Annual Inventory Audit
In accordance with State law KRS 164A.175, all equipment greater than $5,000 must be inventoried annually as designated by the Inventory Control schedule. Such an inventory will be conducted as follows:
- Departments will access their inventory list by University Reports AM-02.
- Every equipment line item on the property printout will be located and observed by Departmental Inventory Coordinator.
- It is very important that the property tag numbers be accurately verified and matched with item serial number, model number, and purchase order number.
- The department general fund account number must be verified. Changes in department general fund account numbers should be reflected on the inventory printout by marking through the previous number(s) and inserting the correct number(s). It is important that previous numbers remain legible.
- The location of each item will be accurately recorded on the printout including building and room location. The building number may be verified from the building number listing (Building Codes). After the inventory item has been located and all the pertinent property numbers confirmed, place a check mark next to the property number on the printout.
- All corrections must be made on the printout or on a memo addressed to Inventory Control.
- Rental or leased equipment should not be inventoried unless tagged.
- Property located in the departmental area that does not appear on the property printout must be reported to Inventory Control. List the barcode number and pertinent information on the inventory listing or a memo.
- Property included on printout that are not located in the departmental area must meet the following criteria: Acceptable justification for removing equipment from University property records when accompanied by property documentation:
- equipment stolen,
- equipment transferred to surplus, another department or university,
- equipment used as trade-in for new equipment purchases,
- defective or non-conforming equipment returned to vendor for credit or replacement,
- old equipment used for repair parts,
- equipment declared scrap.
- When the inventory is completed the Departmental Inventory Coordinator or Department Head shall forward the original copy of the computer printout signed and verified by the Department Head to Inventory Control.
- Upon receipt of the listing, Inventory Control will reconcile the physical inventory to the master property file. Department Inventory Coordinators or the Department Heads will also be given an opportunity for a final verification of their property inventory before a final report of the property is prepared for State, University, or Federal management.
- The department's verified capital asset inventory list must be returned to Inventory Control no later than December 15th of each calendar year.
- A department is considered "noncompliant" if their verified inventory list is not submitted by December 15th of each calendar year. In January, an inventory report of all noncompliant departments will be forwarded to the Office of Vice President of Business Affairs.
Approval of exceptions to the above criteria will be forwarded to the Director of Purchasing by the Inventory Control Manager with a recommendation of action. Where necessary, the Director of Purchasing will review exceptions with the Associate Vice-President for Administration and the Director of Internal Audit.