Inventory Verification Procedures
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Purposes of Verification
Inventory verification is the confirmation of the existence and the location of capital items in the Capital Inventory Control System. The verification of capital inventory is necessary to verify that the capital equipment listed on the inventory records can be located and is in use. It also provides a measure of how well the capital inventory process is working.
Method of Verification
A physical inventory of capital equipment is required every two years by UW System Policy Paper #33. The Inventory Control Office and Internal Audit will perform the audit of items on the Capital Inventory Control System. Verification reports will be sent out at the beginning of the fiscal year. Department administrators will be asked to verify the existence of and the information about the capital items listed on the report.
Procedure for Inventory Verification
- Locate each capital item.
Indicate on the listing "HERE" for the following instances:
- If the item still belongs to your department and all the information is correct the listing.
- If the item still belongs to your department and some of the information is missing or incorrect, please make the addition(s) or correction(s) on the listing.
- If the item has been moved to a location different from the location indicated on the attached listing, correct the building and room. If you are unsure of the room number, contact Inventory Control for assistance.
- If the item has been sold as surplus, indicate "SOLD" on the listing.
- If the item has been traded-in, indicate "TRADED-IN" on the listing. Please indicate details of the newly acquired asset to ensure it is properly on the inventory records.
- If the item has been destroyed, indicate on the listing "CASUALTY LOSS". Briefly state how the item was destroyed on the listing.
- If the item has been discarded because of obsolescence or inoperable, indicate "SCRAPPED" on the listing.
- If the item has been cannibalized and therefore no longer identifiable as the item on the attached list, indicate "CANNIBALIZED" on the listing.
- If the item is not in your department and you have no idea what happened to it, indicate "MISSING" on the listing. A report of missing equipment will be circulated across the campus. If after that time, an item is still not found, it will be removed from the inventory as a lost item.
- If the item has been stolen, indicate "STOLEN" on the listing. Please attach a copy of the police report to the listing.
- After all items have been verified, the department head should return the verification report.
The verification report should then be sent to Inventory Control.
Note: When equipment changes from one location to another, is sold, destroyed, cannibalized or scrapped, there are forms that should be filled out at the time those changes take place. If the changes are made as they happen, inventory verification is much easier. To obtain the forms and instructions on their use, please contact Inventory Control.
If there is an item that you believe cost $5,000 or more and should be on the listing, request the addition of the item. Requests for addition of equipment should be made on the website using the Addition Form. Please fill in the Addition Form completely. The following information will be requested on the Addition Form:
- A description for the item
- Approximate date the item was received
- Department who purchased the item and/or who currently has responsibility for the item.
- A Purchase Order number (if available)
- A Voucher number (if available)
- The original cost of the item (exact or estimated)
- Building where the item is located
- Room number where the item is located
- Manufacturer of the item
- Model name or part number of the item
- Serial number of the item
When Inventory Control receives the request and verifies original cost, an inventory tag will be issued.
Responsibilities of Inventory Control
The Verification Report Package - Inventory control is responsible for preparing the verification report package. Each verification report package will consist of the following sections.
- A memo indicating that this is an official inventory verification and that the department has one month to complete the verification. The memo will also include instructions.
- A verification report for the capital items in the department based on space allocation assigned to that department. This is an Excel spreadsheet.
Processing of the Verification Report received back from departments.
- Update the Capital Inventory System based on the information provided from the verification report. To ensure no duplication of data entry, put a red check next to the item to indicate the item has been updated. If no changes are required, still place a red check next to the item.
- For those items that need to be added to the inventory system, try to verify the indicated cost on the Addition Form is accurate with the financial records. If the date purchased/received is longer than our retention period, use the information provided by the department. Process the Addition Form like any other addition. Also, include a comment on the PeopleSoft panel “Comments” to indicate the addition was a result of the physical inventory process.
- For those items that are re-issued tags, update the Capital Inventory System. Also, include a comment on the PeopleSoft panel “Comments” indicating that the asset ID was changed to xxxxxx from xxxxxx. This will provide record of the date the ID was changed.
- Attach all follow-up correspondence to the verification report.
- When the inventory verification is complete, a red "DONE" should be put on the first page of the report. The verification report should then be signed and dated by an Inventory Control employee. The verification report should be filed and saved for 4 years plus the current.
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