Vehicle registration process

All vehicles must be registered in their country of operation, in compliance with local law.

Vehicles (and larger generators) must be registered and insured before they can be considered operational. The registration process depends on the circumstances in which the vehicle arrives in the operation:

Import procedures must usually be completed and the vehicle must be customs cleared before it can be registered. In addition to the customs clearance certificate, the below documents will be required:

Only a partner with legal status in the country of operation can register a vehicle in their name. Therefore, vehicles used in an operation will usually be registered under the name of the IFRCInternational Federation of Red Cross and Red Crescent Societies or the HNSHost National Society, unless collaborating PNSsPartner National Societies have legal status in the country of operation.

Note: generators and handling equipment do not usually require registration but this can vary between countries.

Insurance

Only a partner with legal status in country of operation can subscribe to an insurance policy. Therefore, vehicles used in an operation will usually be insured under the name of the IFRCInternational Federation of Red Cross and Red Crescent Societies or the HNSHost National Society, unless collaborating PNSPartner National Societies have legal status in the country of operation.

Vehicles rented through the VRPVehicle Rental Programme (see the section on the IFRC vehicle rental programme) will be included in the IFRC global insurance policy, but additional insurance policies must be subscribed to locally, as applicable (these are usually third-party, theft and accident).

Refer to the VRP agreement for more details on insurance claims and payable excesses.

A Federation operation may register vehicles for insurance on behalf of a PNS under the following conditions:

Note: vehicles owned by a PNS and registered under the IFRC are subsequently covered by all IFRC insurance policies.

Tracking vehicle and generator use

For accountability and safety purposes, the use of fleet in an operation must be monitored. It is recommended that regular training is conducted, with refresher training for fleet users and spot checks on the correct use of logbooks.

Vehicle logbooks

Every vehicle operated by the British Red Cross, including rented vehicles, must have an allocated vehicle logbook to monitor the use of the vehicle, refuelling and maintenance.

Every movement of the vehicle must be captured in the logbook, which is an auditable document.

Every entry in the logbook must be signed by the driver (for refuelling), the passenger (for trips) or the fleet manager (for maintenance services).

Where vehicle costs are charged to specific cost codes or programmes, these must be recorded in the logbook, with the passenger or cargo details.

Note: when cargo is transported, reference must be made in the logbook to the waybill associated with the load transported.

Generator and handling equipment logbooks

The use of generators and other handling equipment such as forklifts must also be monitored and auditable. Running hours must be captured in a logbook. Details to be included in the generator and handling equipment logbook include:

The generator (or equipment) handbook must be controlled by the logistics lead at regular, pre-agreed intervals. The logistics lead should sign or initial pages after each regular check.

Generators and handling equipment should normally be allocated to a specific cost code or programme. Where that is not the case, details of the recharge must be indicated on the logbook.

Safety and security

General vehicle safety

Fleet procedures and road safety policies are in place to ensure maximum security for drivers, passengers, and vehicles, and must be adhered to.

All vehicles must be mechanically sound and roadworthy. Fuel, tyres (including the spare), water, coolant, brake fluid, steering fluid and oil levels must be checked regularly.

Refuelling should be optimised so that a vehicle’s tank is always at least half full.

Depending on context, all vehicles should be equipped with communication equipment, emergency repair materials (spare tyres, jump leads, vehicle jacks), passenger safety equipment (safety belt, drinking water), accident preparedness equipment (first aid kit, fire extinguisher, list of contact numbers). All vehicles must be equipped with Red Cross markings, including emblem and no weapons sign.

As per the Asset maintenance section, inspection and maintenance must be planned, conducted, and documented, in order to ensure that vehicles and generators are safe and efficient.

The driver of a vehicle is responsible for checking the condition of their vehicle and all necessary equipment in the vehicle, while the facilities manager is responsible for checking the condition of generators.

View a list of elements that make up a good driver here.

Using generators safely

Where generators are used as back-up power or a primary power supply system, the below recommendations will ensure safe usage of the units.

Generator sheds (see the example design below) are recommended to limit access to the generator and protect humans and animals. It also ensures that only one person oversees the maintenance of the generator.

Generator safety basics:

ICRC convoy procedures

When operating in the field, the ICRCInternational Committee of the Red Cross and other Movement partners often travel in convoys. Because of the nature of ICRC operations, unarmed and in conflict situations, humanitarian personnel often travel in a group of vehicles, for protection purposes. The head of delegation decides in what situations this is necessary.

The aim of the ICRC Convoy Procedure document is to provide guidelines to staff organising or joining convoys. The list of responsibilities is designed to help conveyors and drivers in the field, before, during and after a convoy. 

British Red Cross driving procedure

The British Red Cross has a Driving in the British Red Cross policy that must be adhered to when driving a British Red Cross vehicle in the UK.

When driving a British Red Cross vehicle outside the UK, the agency with security lead (the IFRCInternational Federation of Red Cross and Red Crescent Societies, ICRCInternational Committee of the Red Cross or HNSHost National Society) provides driver regulations. It is the responsibility of every British Red Cross delegate to enquire about applicable driver regulations when joining a Red Cross operation.

Provided that they have passed the driving test and hold an official driving license, delegates may be allowed to use vehicles for personal use. However, rules applying to the personal use of vehicles will vary depending on the context of the operation, and advice should be sought from the IFRC or the HNS.

In some operations, the personal use of fuel will be recharged to delegates.

Note: logbooks must be kept up to date for personal as well as professional use.

IFRC driver rules and regulations

All personnel deployed within the IFRCInternational Federation of Red Cross and Red Crescent Societies must read and sign a copy of the operation’s driver rules and regulations form before they are authorised to drive a Federation vehicle.

The form sets out both country-specific rules and standard operating procedure for the use of Federation vehicles. A signed copy of the form will be kept in the staff member’s personnel file.

The default position on IFRC and other Red Cross missions is that delegates are not allowed to drive themselves, unless the country-specific driver rules and regulations allow it. Medical evacuations and security situations are treated as exceptions to that position.

The standard driver rules and regulations form must be adjusted to reflect country-specific conditions. The head of operation for a Federation operation, the head of project for a PNSPartner National Society operation or the secretary general for a National Society operation determines the country-specific rules concerning vehicle use (for example, conditions for and limitations on delegate driving, mission order procedures, country-specific security regulations, etc).

The fleet manager or delegated authority must ensure that all vehicle users are aware of Federation procedures and country-specific rules, as well as local driving regulations and conditions.

All drivers, including delegates, must have a valid driver authorisation form, signed by the head of operation and the fleet manager, before they are permitted to drive a Federation vehicle. The authorisation must specify the types of vehicles permitted and any limitations on their use.

Note: passengers are restricted to National Society personnel (volunteers and staff), IFRC and ICRCInternational Committee of the Red Cross staff. Members of UN agencies and other NGOs are permitted as passengers, as long as travel is within the scope of the Movement’s activities. Transporting other passengers or cargo is not allowed, except with previous authorisation from the IFRC country representative or staff in charge of managing local security (for example, programme manager, ops lead, etc).

All drivers, including delegates, must undertake a test of driving ability in their country of station or deployment.

British Red Cross safety training pathway

Refer to the Safety training pathway section in the Warehousing chapter.

Planning for usage

A well-sized fleet should aim for maximum usage, with minimum “idle” time and maximum availability for requests, with minimum service interruption or “down-time”.

Requesting a vehicle and cost recharge

To ensure vehicles are consistently available and sufficient for an operation’s needs, with a minimum number of vehicles underused, a request system that is as simple as possible and as complex as necessary will be helpful.

There are multiple ways in which users can request vehicles:

Vehicle whiteboard – used on a daily basis, listing all available vehicles. Requestors write their name and department on the whiteboard, with trip details (destination, departure time, number of passengers, estimated duration).

Vehicle requests should ideally be recorded at the end of the week for the next week, with an agreed level of flexibility for unforeseen circumstances.

Vehicle request form – submitted to the fleet manager or dispatcher within an agreed timeframe before the vehicle is needed.

Cargo transport request form – for the transportation of goods within an authorised area.

If the transport request is to locations outside of the authorised area, it should be accompanied by a mission order.

These methods are applicable to cases where vehicles are needed for local movements on a single day. Longer trips outside of the operating area or multiple-day trips must typically be approved through a field trip form or mission order, which requires sign-off from line manager, fleet manager and potentially the security manager (depending on context).

Vehicles are usually managed as a pool by the logistics department. Other departments can request to use vehicles, usually on a daily basis, and their usage can be recharged to the requestor through the pool management system.

Vehicles can also be fully allocated to a specific budget, with all costs related to them, including driver, fuel, maintenance and insurance, charged to that budget.

Note: logistics usually has budget to cover fleet maintenance costs, but unusual maintenance services can be charged to requesting departments as applicable.

Fleet productivity: utilisation and performance

In order to review the size of the fleet, monitor usage and report on fleet performance, it is recommended to track productivity in different dimensions.

Fleet performance can be measured looking at:

Vehicles’ performance can be measured looking at:

Where no logistics staff are available, country representatives/delegates should seek support from HNSHost National Society, IFRCInternational Federation of Red Cross and Red Crescent Societies or UKOBRC headquarters in London - UK Office logistics coordinators to compile the fleet performance data.

For more details on reporting for fleet, see the Reporting on fleet section.

Read the next section on Managing fleet here.

Download the full section here.

Available to download here.

Note: operational constraints include security context and regulations that may apply (import options, labour law, etc).

Vehicles

The number and type of vehicles should always be aligned to the operational needs and conditions, including security, terrain, and team movement patterns. Operational fleet decisions must be compliant with IFRCInternational Federation of Red Cross and Red Crescent Societies safety and security guidelines (as stated in the IFRC Fleet Manual), with any deviation requiring approval from UKOBRC headquarters in London - UK Office.

The vehicles selected must comply with IFRC standards, unless approval for the use of non-standard vehicles has been obtained from UKO.

The IFRC standard products catalogue contains full technical specifications of Federation-standard vehicles.

The key point for organising fleet is knowing what the needs are for the programmes in the country office (including any sub-delegations) and for general operations. It is the role of logistics to analyse these needs and then optimise the fleet. This, combined with the national regulations (i.e. load limits for trucks) and the limitations of the surrounding area (i.e. infrastructure) will provide the necessary information to choose the most effective set-up of fleet.

Defining the number and type of vehicles depends on the volume of the workload and the material or number of passengers to be transported, as well as the distance and terrain covered.

The below table will help define the type of equipment needed in operations. To help calculate the number required of each type of vehicle, see Annex 9.1, vehicle set-up evaluation in the ICRC fleet management manual.

Combining and analysing these needs into a summary table will help constitute the fleet (in number and type), in a way that meets the needs of each team and minimises the cost of operation. The vehicle pool system (see the Requesting a vehicle and cost recharge section of Vehicle usage) should be considered, as it maximises vehicle utilisation through avoiding the taking of vehicles without justification.

Available to download here.

Power supply

Generators must be set up and maintained by qualified staff – a mechanic or a head driver. Support is always available from locally available staff from other PNSPartner National Society, IFRCInternational Federation of Red Cross and Red Crescent Societies or ICRCInternational Committee of the Red Cross or from UKOBRC headquarters in London - UK Office-based logisticians.

Note: specialist skills are required to manage generators. Staff involved in plant management processes must be trained electricians or experienced logisticians.

The output of a generator is measured in KvA (kilovolt-ampere) and volts. They can be air or water-cooled and can be soundproofed (silent) or not. Generators are either petrol or diesel-powered.

The British Red Cross uses hybrid generators when deploying their logistics or MSMMass Sanitation Module Emergency Response Unit teams (see the ERUs chapter for more details on the ERUs). These provide standard power generation and simultaneously charge a set of batteries, which can be used to provide power once the generator is turned off. The batteries’ power demand must therefore be included in the load calculations. Details of the generator specifications as well as a user manual are available from the international logistics team upon request and provided to the ERUEmergency Response Unit teams when they deploy.

 It is important to match the power generated to your electrical needs as closely as possible: if the load is too high, the generator will stop and be damaged. But when the generator is supplying less than 40–50 per cent of its power capacity, fuel consumption increases, the lubricant deteriorates more quickly, and the engine’s life cycle is reduced.

Without any power demand to it, a generator will typically already be using 25-30 per cent of its rated power.

Available to download here.

It is a good idea to have batteries as part of an electricity provision setup, so that they can be charged while the generator is turned on. Critical appliances (communication systems, fridges, alarm and/or security systems) can then work in case neither city power nor the generator can supply power. If the generator is used to charge batteries, make sure their rated kVA is calculated into the total power requirements.

To calculate your power supply needs and to choose the right generator, use the power calculator table. The generator size (in kVA) must be equal to or greater than the total consumption of all appliances. The higher starting requirement must be considered when calculating the generator size.

Available to download here.

Fleet options and modalities

The RCRCRed Cross Red Crescent’s aim regarding fleet management is to standardise fleet as much as possible, allowing for easier tracking, resource-sharing, and maintenance management. It also allows different parts of the Movement to benefit from competitive pricing from manufacturers.

Vehicles outside the list of standard fleet should only be purchased after approval from a centralised fleet management team (usually HQ logistics, IFRCInternational Federation of Red Cross and Red Crescent Societies or ICRCInternational Committee of the Red Cross).

The IFRC standard products catalogue and VRPVehicle Rental Programme include the list of standard vehicles.

Fleet to be used in field operations should always be procured centrally and through the existing agreements with manufacturers.

Standardisation and compliance to environmental regulations should also be applied to the choice of generators. In general, ensure that the brand is well-established, that fuel type matches local fuel availability and that spare parts and maintenance are widely available.

Different types of fleet sourcing solutions

British Red Cross own fleet

In this option, the British Red Cross purchases the vehicles and uses them for its operations.

The decision of what vehicles and how many to buy will be based on operational needs and the procurement must be controlled and managed through UKOBRC headquarters in London - UK Office. Such vehicles would be purchased and imported under the HNSHost National Society and the British Red Cross would donate the vehicles to them once the British Red Cross-supported programme ends.

In these cases, the British Red Cross usually covers all the costs associated with the vehicles, including maintenance, drivers’ charges including per diems, local insurance, registration and fuel.

The maintenance of British Red Cross-purchased vehicles outside the UK is done following the IFRC maintenance guidelines, unless it is agreed that the vehicle is managed under the HNSHost National Society‘ fleet management procedures.

Commercial rentals

Renting vehicles or outsourcing their maintenance can be a requirement for an operation either temporarily (during a short-term surge in activity) or as a long-term solution (where ownership is not an option).

If renting vehicles, the applicable procurement procedure should be followed. The selected rental company must be reputable and offer value for money. See the Sourcing for procurement section for more details.

IFRC vehicle rental programme

For step-by-step guidance on sourcing vehicles through the VRPVehicle Rental Programme, refer to the VRP service request management/business process document.

The vehicle rental programme

The International Federation’s vehicle rental programme (VRP) was established in 1997 to ensure a cost-effective use of vehicles and fleet resources. Revised in 2004, it continues to be an effective means of providing vehicles to International Federation and National Society operations. The programme is run as a not-for-profit service within the International Federation; monthly vehicle rental charges are calculated to cover the vehicles and the operating costs of the VRP.

Depending on the estimated period of vehicles’ requirement, it may be cheaper or more straightforward to rent them through the VRP, but a full cost comparison should be done before a decision is made. Cost comparison must cover the cost of the vehicle, shipping, registration, insurance and local insurance, maintenance and PSR of 6.5 per cent.

The overall aim of the VRP is to provide good-quality vehicles as quickly as possible, and with maximum bulk discount. It also enhances standardisation, centralises control and minimises costs, through end-of-lease sale. Vehicles on this programme are managed through the fleet base in Dubai and remain the property of the IFRCInternational Federation of Red Cross and Red Crescent Societies. All leases must be organised through the IFRC.

The vehicle rental programme is managed through the global fleet base in Dubai, but a lot of the fleet management team’s responsibilities are delegated regionally and implemented through regional fleet coordinators in the Operational Logistics procurement and supply chain management units (OLPSCM, also known as Regional Logistics Units).

Note: monthly VRP invoices are processed through UKOBRC headquarters in London - UK Office.

The VRP agreement is materialised through a vehicle request form, which must be signed off by the British Red Cross country manager and submitted to the global logistics service (GLS) team in Dubai.

Global fleet base vs regional units: roles and responsibilities

VRP system – roles and responsibilities are as follows:

VRP rental costs

To encourage forward planning, cost incentives have been built into the VRPVehicle Rental Programme. Rental rates are based on a sliding scale, in which longer rentals benefit from cost savings (i.e. a sliding scale, based on the duration of the contract).

Available to download here.

These rates are indicative and may change – quotes can be requested from the global fleet team when considering renting vehicles through the VRP. The latest version of the rate sheet is available here.

An additional 6.5 per cent programme support recovery cost must be added to the total cost of the contract with the VRP, as well as delivery and return shipping costs (including any applicable import duties).

VRP system – cost structure

Using another National Society’s vehicles

Most National Societies (NS) use a mileage rate that they charge for the use of their vehicles by Partner National Societies (PNS). Alternatively, they may charge a monthly fee or let PNS use their vehicles and only charge them the cost of fuel.

Mileage rates and what they include often differ, and it is recommended to clarify what is covered (fuel, driver costs, maintenance, etc), and how the amounts to be recharged will be calculated.

Choosing the best vehicle ownership solution

Read the next section on Resourcing for fleet management here.

Download the full section here.

Due to the variety of ways of working within the British Red Cross, the responsibility of procuring, maintaining, reporting, and disposing of assets may lie with different parties.

The standard types of relationships are listed below, indicating respective responsibilities.

Note: HNS refers to Host National Society, PNS to Partner National Society and NS to National Society.

*When British Red Cross partners with a PNS who implements with a HNS

Available to download here.

Note: partnerships with IFRCInternational Federation of Red Cross and Red Crescent Societies and/or ICRCInternational Committee of the Red Cross normally follow IFRC/ICRC asset disposal procedures.

Read the next chapter on Fleet here.

Download the full section here.

When closing down an office, operation or programme, all assets should be allocated a disposal option in an asset disposal plan that forms part of an overall exit plan of action.

The selection of options through the asset disposal plan is the responsibility of the budget holder (programme manager or country manager), implementation of the disposal plan is delegated to Logistics.

Separate to these options, the option to export the asset back to the UK for further use should always be considered, based on the type of item, value and relevance in the local context. Consult the Logistics Coordinators to enquire about the relevance of returning an asset to the UK.

The budget holder must select the best option from the above list when creating the asset disposal plan.

The asset manager is responsible for managing the asset disposal process following the RACIResponsible, Accountable, Consulted, Informed matrix in the Donating an asset to other organisations section of Asset donations. However, accountability for the process lies with the budget holder who must initiate the process, make the relevant decisions about each asset’s disposal and ensure all steps are followed properly through to sign-off of the disposal plan.

Reporting losses: all lost or stolen assets should be recorded on the frauds and losses register as they occur. British Red Cross requires all asset losses to be reported through Datix incident management system.

Damaged assets must be identified as such – logistics must be consulted on repair options and arrange for agreed repairs.

The overall exit plan of action, and the asset disposal plan in particular, must be signed off according to the total value (that is, the purchase value, not the depreciated value) of the portfolio of items/assets being disposed of following the thresholds listed below and signed off in the MPBMajor Programme Board if there is one.

Note: regardless of the total value of the asset disposal plan, it is critical that the budget holder (programme manager or country manager) is informed at all stages of development of the plan.

Once the asset disposal plan has been finalised, it should be circulated to the designated approvers, together with an asset disposal plan sign-off form.

Disposal by donation

The preferred option for disposing of surplus stock and assets is to donate them, so they continue to benefit the needs of the communities they were originally sent to help.

Potential receivers of asset donation (see order of preference to be followed above) should be contacted sequentially with donation offers, with a timeline within which they should respond. Beyond that timeline, the next option can be considered. Dates and offers of donations must be kept in writing.

Do they want them?
A list of the items available should be shared for potential receivers to pick from.

Can they use them?
Sophisticated and specialist equipment may require training before the receiver can autonomously use and maintain it.

Can they maintain them?
Certain items will require maintenance – can the receiver cover the cost?

Disposal by sale

Logistics are responsible for organising the disposal of assets by sale, after all the necessary approvals are obtained.

When selling items, a transparent system must be put in place, with a senior staff member overseeing the process. This could be through sealed-but-publicly-opened bids for higher value items or through a public, live auction with set prices for lower value items.

Sale of fixed assets should be performed on a sealed-bid basis, to obtain market value and ensure that the sale is both transparent and at “arm’s length” (with no possible interpretation of fraud or collusion). This is done by the following:

The sale of items or lots with a total value below £500 does not need to be performed by sealed bidding, and prospective buyers may be approached by telephone, letter or in person as well as through the media. After inspecting the asset, they may submit informal bids by phone, email, in writing or in person.

Competitive bidding. Invitations to bid for the purchase of assets are published in local media and issued to pre-identified prospective purchasers, and it is recommended that advertisements be published in the local media to encourage sales. The invitation to bid must specify whether augmented bids will be accepted after the opening of bids; if this is not specified, bidders should not be allowed to raise their bids after the official bid opening. If raising bids after the bid opening ceremony is allowed, bidders must be encouraged in their invitation to attend the sale in person and it must be made clear in the advertising and bidding documents that this will be an option.

Sale by fixed price may be recommended if the value of the property is known and the fixed price will ensure a fair return to the British Red Cross. However, it may be better to advertise for sealed bids, with the desired fixed price set as a minimum. This minimum set price should not be advertised however to allow opportunity for receipt of higher bids.

Note: the sale of assets to staff is usually not permitted. Should this be allowed as an exception, it must be a transparent process where all staff members have the opportunity to purchase.

Selling process

View and download a flowchart illustrating the selling process here.

Determining fair market value (FMV)

By broad definition, fair market value is the price that would be demanded and paid in a sale involving a willing seller under no compulsion to sell and a willing buyer under no compulsion to buy, assuming both have reasonable knowledge of the relevant facts about the asset.

Consult HQ logistics when there is a need to determine fair market value.

Actions subsequent to sale

The asset register must be updated based on the bill of sale, with a copy of the bill of sale kept on file.

The organisation’s Insurance policy should be updated following the sale.

The proceeds of the sale must be reflected in the monthly accounts and incorporated as income to the programme for which the asset was utilised before being sold.

Disposal by public auction

Sales of items or lots of a total value above £500 to third parties are to be conducted by public auction or by submitting sealed bids. Sales are to be made to the highest bidder (subject to the reserve price being met). Exceptionally, local and international staff can bid on items but will have to place the highest bid to win them.

Proceeds from sale:

Income from the sale of assets funded by donors must be used as co-funding or according to donor guidelines.

The money received from the assets’ sale must be recorded in accounts as income and not set against the expenditure account.

Public sale with fixed prices:

Reserve prices should be set by a logistics coordinator, with validation from the head of delegation or country representative.

They should be roughly equal to prices found on the open market.

Disposal by destruction

Destruction of assets/inventory is subject to local environmental law and can be expensive.

Check for special authorisation from government, especially for the disposal of food, chemical items or dangerous goods found in assets (batteries, fluids, etc).

Recycling companies can be contracted to dispose of assets, though some costs may be incurred.

Writing off obsolete assets – UKO assets only

While stored in the UK, pre-positioned assets are largely managed as stock and kept on a balance sheet – items are purchased with logistics budget and reimbursed by users as they request the assets in stock.

When assets are broken or obsolete before they can be deployed, they must be written off and somehow “paid for”.

Logistics have some budget to cover write-off costs, but where assets have been damaged in use, the user’s team’s budget should cover the cost. A stock/asset write-off form must be completed and approved before the asset’s value can be written off the balance sheet.

The destruction or donation of obsolete assets should be budgeted for unless the asset has reached its 0-value due to depreciation.

Note: when an asset has been sold, its value can be offset against the proceedings of the sale without using funds from any other budget.

IT, communications, and data management assets specifics

An IT decommissioning policy does not currently exist within the British Red Cross. However, when disposing of any IT, communication or data management assets (such as computers, tablets, phones, GPS devices, radio sets and satellite phones), all the data stored on the device and all the parameters that were set up on it must be wiped off the device, applicable SIM cards removed and accounts closed.

In case of doubt, please contact the regional logistics coordinators so they can provide any necessary technical support.

Read the next section on Asset management and partners here.

Download the full section here.

Receiving an asset donation from a partner organisation, donor, commercial actor

No asset can be received without an asset donation certificate being raised (ideally by the donating party rather than the receiver, although the receiver can raise the receipt) and a GRN, signed by both parties.

The asset is tagged with a new number, per the numbering sequence maintained by the asset manager.

The asset is recorded on the asset register, with both the purchase value and the current depreciated value. It should be marked as a donation, with reference to the donation certificate or receipt number. Ideally, a donations tracker should be maintained and updated with any received donation.

The asset donation certificate should be kept on file.

Donating an asset to other organisations

No asset can be donated without a donation certificate being raised by the donating party and mutually signed. Note that the level of approval of the donation certificate will depend on the total amount of the donation.

Refer to the Asset disposal section for more details.

Note: regardless of the total value of the asset donation, it is critical that the budget holder is informed in case an asset purchased with the budget they are responsible for is considered for donation.

Where applicable, ensure the donor has agreed to the asset donation. Depending on the donor, this may be through a formal submission of the asset disposal plan for approval and should be submitted through the relevant donor facing colleagues.

The donated asset must be kept on the asset register but marked as donated, with reference to the donation certificate number.

The asset tags and any other Red Cross visibility and data must be removed from the asset before it is physically transferred to the receiver.

Ensure that the applicable taxes are paid by the agreed party. Note: assets imported in a country on a tax-free basis often require payment of taxes at the time of donation. The receiver must be aware of all the costs associated to owning the asset (tax, registration, maintenance, etc.) and agree to cover the costs.

In the case of donating assets that are more sophisticated than those usually available in the country or region of donation, ensure that the receiver has been trained on the usage and maintenance of the asset, and that they understand that the donating party will accept no responsibility in case of harm or damages caused by the use of the asset.

See guidance for asset disposal or transfer in the UK.

Ideally, a donations tracker should be maintained and updated with any donation to other organisations.

Read the next section on Asset disposal here.

Download the full section here.

Consumables/office supplies

Consumables don’t need to be taken as stock or assets, as their value is usually low. These include cleaning materials, stationery, lightbulbs, and other replacement items.

View and download a diagram illustrating how such items are managed here.

Equipment

Items that are worth less than £1,000, not powered by electricity, do not incur maintenance costs, have a useful life of less than 3 years, and are not defined as assets by the donor who funded their purchase, are classified as equipment and should be tracked on a property register.

Furniture, unless items worth more than £1,000 should be included on the property register rather than on the asset register.

Stocks

For the management of stocks, refer to the Warehousing chapter.

Read the next section on Procuring assets here.

Download the full section here.

To determine whether an item procured or received as Gift in Kind is an asset, stock, supply or piece of equipment, consult this diagram.

The below table defines the British Red Cross’ understanding of assets. Different partners may have different definitions (especially around the minimum value or useful life of an item), which will be stated in their own logistics or financial procedures.

*The storeroom is typically a small room in the office where a small stock of office supplies is kept.

Available to download here.

In British Red Cross, asset management requirements are defined in the GADGrant Agreement Document, together with any other specific requirements, whether they come from British Red Cross or from a donor (Section 6 in the standard GAD). Where it has been agreed that the partner will use their own asset management procedure, this requires prior approval and must be mentioned in the GAD.

One person from either logistics or finance must have operational responsibility for asset management, delegated from a country or programme manager.

In certain operations, assets may be managed at a programme or project level, but it is recommended that someone is allocated the task of centralising asset management (see above RACIResponsible, Accountable, Consulted, Informed matrix for reference).

In large, multi-site operations, an asset manager should be hired to ensure compliant asset management. The task of asset management can be part of an existing role, such as logistics officer or finance officer, or exist as a standalone asset manager role.

Read the next section on Categories of assets here.

Download the full section here.

The 11 major rules of running a warehouse:

Definition:

A warehouse is defined as a planned space for the storage and handling of goods and materials. Goods and materials stored in a warehouse are considered as stock, which is also called “inventory”. Warehouses are an integral part of the supply chain, their main purpose being to serve as physical transit points between supply (delivery from suppliers) and demand (end-users or beneficiaries).  

Where needed, warehouses allow for the breakdown of bulk deliveries across different requestors or into phased deliveries, and for the combination of loose items into kits to meet beneficiaries’ needs.

A well-managed and well-positioned warehouse allows for speedy responses to both planned and unplanned needs and ensures that both inventory and staff are ready to respond to planned and unplanned needs.

Functions of a warehouse

View and download a detailed diagram of warehouse functions here.

Different types of inventory

It is important to be aware of the difference between stock (inventory), office supplies, office equipment and assets:

*The storeroom is typically a small room in the office where a small stock of office supplies is kept

Available to download here.

Purposes of holding stock

The main purpose of stock is to de-couple supply and demand in an operation that requires the provision of pre-determined goods and materials.

Stock ownership

Generally, stock is owned by its original requestor (the person who pays for the goods) and physical management of items and materials is delegated to logistics.

This means that logistics cannot choose to increase or decrease stocks unilaterally and that updates on inventory must be shared between the logistics team and the owners of the stock managed in the delegation.

In that sense, logistics is responsible for the inventory it holds for others, but requestors and programme managers are accountable for the type and quantity of items they require logistics to hold in stock for their use.

Stocks management – roles and responsibilities

RACI matrices are used throughout this manual. They break a process into steps, specifying who is Responsible, Accountable, Consulted and Informed at each step of the process.

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The valuation of inventory is critical for the organisation to manage the risk of ownership of stock in general, and in particular to support the definition of insurance requirements.

Financial management of stocks

For financial management of stock in the UK, refer to the Bulwick warehouse SOP, ERU kit SOP, UKO stock management SOP, RLU stock management SOP and the Balance sheet guidance note.

More information on the Regional Logistic Unit (RLU) and Emergency Response Unit (ERU) stocks management can also be found in the RLU stocks and ERUs chapters of the Manual.

The general concepts to bear in mind are:

Note: it is recommended that the members of the logistics team who manage stock regularly meet with both their requestors and the finance team to review current stock type, levels and locations, discuss proposed changes (if any), ensure budget management and reconcile stock. In the British Red Cross, the logistics team meet with owners of the stock they manage (ERU kits, RLU representatives) and with their finance business partner on a regular basis.

Stock positioning

Within the Red Cross Movement, stocks are held at different levels and the processes to follow to access stock vary between levels of storage:

The IFRC’s global stock strategy aims are:

To cover the initial needs of the immediate aftermath of any disaster, the IFRC, with the stock pre-positioning of their members in the different RLU, has pre-positioned emergency response stockpiles in their network of regional warehouses across the globe, which could support up to 450,000 people at anytime and anywhere.

Read the next section on Building a stock strategy here.

Download the full section here.