Oregon State University

602: Manual Inventory

Property Management Policy & Procedure Manual
Section 600: Biennial Inventory
Effective: 03/01/1971
Revised: 01/18/2012

 

Purpose

To properly inventory capital equipment.

Background Information

Requirement for a Physical Inventory
As a recipient of federal grants and contracts, OSU is required to be in compliance with the Office of Management and Budget Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations.

OMB Circular A-110 states in part:  "A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment."  See OMB Circular A-110, Property Standards, Section 34 (f) (3).

Reporting Results of Inventories

Business Affairs, Fixed Assets is required to notify the Office of Naval Research (ONR) upon completion of OSU's biennial inventory and provide them with (A) a listing that identifies all discrepancies disclosed by the physical inventory, and (B) a signed statement that a physical inventory of all or certain classes of Government property was completed on a given date and that the official property records were found to be in agreement except for discrepancies reported.

ONR is the cognizant agency for property procedures and rates the University on its ability to protect, preserve, account for, and control Government-owned property.  An unsatisfactory rating would have an impact on OSU's ability to receive federal grants and contracts.  Every effort should be made to identify all assets on OSU's inventory during the physical inventory cycle.

Policy

Off campus departments, Extension Offices and Agriculture Research Stations will conduct manual inventories biennially when a bar code inventory is not scheduled. 

Procedure

 

Responsible Party Action

Business Affairs, Fixed Assets

  1. Mail (1) a current asset inventory listing, (2) an 'Assets Not Scanned' Report, and (3) the Fixed Asset Condition Code Update to the department.

Business Affairs, Fixed Assets & Department Rep.

  1. Physically verify the existence of each asset on the asset inventory listing and that the asset's bar code tag is affixed.
  2. Complete and submit to Business Affairs, Fixed Assets the "Assets Not Scanned " report. On the form, note all the located assets as "found" in the blank field to the right of each asset. Exceptions such as items on loan, missing, etc. should be explained in the blank field to the right of each asset with appropriate documentation supporting the explanation. Submit the Assets Not Scanned Report to Business Affairs, Fixed Assets with supporting documentation that may include the following:
    • Copy of a loan agreement
    • Print out of email confirming location of asset and responsible parties
    • Copy of surplus pick up request for items sent to surplus
    • Property Disposition Request form for items cannibalized or salvaged
    • Property Disposition Request form for missing items
    • Fixed Asset Transfer form for items transferred to another department

      Note: See PRO 903: Reporting & Inventories for necessary actions regarding missing federal property
  3. Complete and submit a Fixed Asset Condition Code Update form to Business Affairs, Fixed Assets (received in step #1 above). This form lists the department's assets in numerical order including basic information from the inventory record.
    1. Complete the two sections on the right side of the form. The first section lists the various condition codes that may apply - A1, A2, A3, A4, A6 A7 and ML. The description of these keys is at the top of the form:
      • A1 – Excellent
      • A2 – Good
      • A3 – Fair
      • A4 – Poor
      • A6 – Useable
      • A7 – Non-functional
      • ML – Missing/Lost
    2. Circle the code that most closely describes the current condition of the asset.
    3. Note the "date of last use" to the right of the Condition Code in the 2nd section. This can be an approximate date if the asset is used irregularly.
  4. The Dean, Department Head or Director of the unit should review both the Reconciliation form and the Fixed Asset Condition Update form. Sign and date each form on the line provided on each form. Submit both forms together to Business Affairs, Fixed Assets within the date requested by Business Affaris, Fixed Assets. This finalizes the physical inventory process for the department.

Business Affairs, Fixed Assets 

  1. Process paper work upon receipt and updates asset records as necessary.

Additional Information

Auditing the Auditors
ONR conducts an audit of OSU's property procedures each biennium, called a Property Control System Analysis.  The audit includes a review of OSU's Administrative Policies and Procedures Manuals (including this manual), a review of inventory results, and may include an on-site inspection of federally owned assets.  OSU's Property Control System is currently approved.

Contact Info

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