Chapter 2 – Fiscal Management

22030.12.6 Physical Inventory of Property

• The Department shall conduct a physical inventory on all property and reconcile the inventory with accounting records at least every three years. Inventory counting does not need to be performed at one time. Units may take a rotating inventory according to an inventory calendar.

• Units shall develop and carry out an inventory plan that shall include:

  • Inventory taking.

    • Time schedule.

    • Count procedure (type of listing or count sheet to be used).

    • Count assignment (statement of who shall take the inventory at the times and locations scheduled).

  • Internal control.

    • Inventories shall not be exclusively controlled by the custodian of the property records.

    • Worksheets used to take inventory shall be retained for auditing purposes. The worksheets shall show the date of inventory and the name of the person taking the inventory.

    • Physical inventory records shall be retained until the inventory reconciliation is completed.

    • The person in charge of the storeroom, if one is used, shall not be in charge of maintaining the inventory records nor the taking of physical inventory in that location.

  • Reporting and approval of inventory adjustments.

    • Adjustments and reconciliation of the records shall take place after the physical count has been completed.

    • Review and approval of all inventory adjustments shall be made by the business managers at the institutions or section chiefs at all other Department facilities. This review and approval shall be documented on a STDStandard Form (DGS) Form 157, Property Listing Adjustment Sheet.

• For any move of an office from one building to another, an inventory shall be conducted on property items prior to and after the move is completed. This shall ensure that all property is accounted for and that property records are updated and the move completed as planned.