Financial Services and Operations

Chapter 7: Physical Inventory

Capital equipment is inventoried at least every two years. In some cases a federal agency or other sponsoring organization may require an annual or more frequent inventory of equipment. In addition, other special inventories may be conducted for sponsor funded property.  Physical checking of inventory must be completed and verified by staff other than those in possession of the equipment.

For the annual equipment inventory, department equipment coordinators review, on Banner, a list of equipment assigned to their department required to be inventoried.  Departments shall research the present status and location of each item and physically inspect the item.  The verification of each item is then processed by the equipment coordinator via the Banner system.

In preparation for a federal equipment inventory, Financial Services and Operations will generate a list of property accountable to each award and submit it to the Principal Investigator, or the department's equipment coordinator, for a physical inventory. This inventory should include a determination of each asset's current condition as well as whether or not it is still needed for the purposes of the award. The information is sent back to Financial Services and Operations, which is then responsible for completing the forms required by the individual sponsor, and submitting them to the appropriate agencies.  This inventory also includes any property which is located off-campus or at a subcontractor facility.

Inventory of government materials and supplies is conducted by the PI on a regular basis when required.  Tangible items not immediately consumed during research may be accountable to the federal government. This inventory may include recording the government ID, stock number, the unique identification number, unit of issue, location, and balance on hand. Physical inventory of all unconsumed supplies, materials, and minor equipment should be taken on a regular basis and records kept by the department.

Inventory Results and Reports

The results of the physical inventory are posted to the property record and reports are created.

Report distribution may include, but is not limited to, the following:

  • Dean or Director
  • Controller's Office
  • Sponsoring Agency
  • VP Research
  • Internal & External Auditors
  • Federal Property Administrator