This policy explains the inventory process for capitalized equipment. An on-going physical review and identification procedure is required under the supervision of USNH Property Control.
1. Definition of the Inventory Process: An inventory is a verified listing of all capitalized pieces of moveable equipment administered by a department. USNH Property Control rely on Equipment Custodians/Managers to review and verify all data on the biennial inventory reports for equipment under his/her care for accuracy and completeness.
2. Why is the Inventory Process Necessary? Inventorying is an important and necessary requirement for sponsor funding, internal budgeting, and annual federal and financial audits. Federal regulations require a physical inventory of government owned assets annually. Also, part of a good internal control system includes the performance of regular inventories.
3. Responsibility: Equipment Custodians/Managers are responsible for the accuracy, completeness and timeliness of the equipment inventory assigned to them.
4. Inventory Requirements: For government owned equipment a physical inventory is required on an annual basis. Physical inventories are required to be taken and reconciled per OMB Omni-Circular at least once every two years.
B. DETAILED OPERATING PROCEDURE
1. Annual Inventory: Annual inventories are performed by USNH Property Control for all government titled items.
2. Biennial Inventory: Biennially, inventory reports are distributed to Equipment Custodians/Managers of record by USNH Property Control. The Equipment Custodian/Manager must personally verify the existence of every item, validate every attribute on the report, and sign the attestation statement included with the reports. The Equipment Custodian/Manager must return the completed inventory to USNH Property Control Office within 60 days of receipt of the report.