Inventories

File: DIC

Inventories

Inventory Control Function

Adequate inventory records of supplies and equipment shall be maintained. A perpetual inventory system provides a continuous report of the quantity and description of inventory on hand.

Equipment Inventory

The equipment inventory record for each piece of equipment should include the following information:

1. Name of item, make, model, and serial number

2. Date of acquisition

3. Original cost

4. Location

5. Improvements and cost

6. Maintenance dates, if applicable

7. Estimated life

8. Disposal date

Supply Inventory

The supply inventory record for each item or group of items should include the following information:

1. Name of item

2. Quantity purchased

3. Date of purchase

4. Cost of each purchase

5. Reorder point

6. Amount dispensed

7. Date dispensed

 

Record Retention

1. Supply inventory record cards are maintained on an active basis until the item is discontinued.

2. Inactive supply inventory cards are retained for a minimum of two years.

3. Equipment inventory cards are maintained on an active basis until an item is retired.

4. Inactive equipment inventory cards are retained for a minimum of three years.

Other Inventory Considerations

1. Make physical counts to spot-check the supply inventory during the year to determine the accuracy of the inventory records.

2. Make a physical count of all the supply inventory items on June 30 and reconcile with the perpetual inventory records. Careful examination should be made of large inventory discrepancies.

3. Periodically review the inventory records and physically inspect all storage areas to ascertain conditions, surpluses, or shortages of supplies and equipment.

4. Surplus or outmoded equipment, materials, and supplies no longer needed or required may be disposed of as follows:

a. Traded on the purchase of new items

b. Public sale

c. Scrapped

The disposal of surplus property purchased from the federal government must be coordinated through the appropriate federal agency.

Reference: State Board Resolution (April, 1978); 1-6-75

Revised: April 11, 2011