FIACCT 09-16_02 Fixed Assets – Annual Physical Inventory

Effective: March 16, 1998
Revised: July 2, 2001

Purpose

This policy describes how to conduct an annual physical inventory of all fixed assets owned by the State.

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Policy

It shall be the responsibility of each state agency to conduct a complete physical inventory of all fixed assets annually. To perform this annual inventory, agencies may use the quarterly FA6A Inventory by Custodian Report. Agencies should physically locate each fixed asset listed on the report and verify that the tag number on the asset agrees to the Fixed Asset Number on the report. Other information on the report such as custodian, location, description, etc., should also be verified. Agencies should also check to see that all fixed assets they have custody of are on the report. Any differences between an agency’s assets and the inventory report should be investigated and, if necessary, correcting entries posted to FINET Fixed Assets within 30 days of completing the inventory. The inventory should not be made by individuals with fixed asset custodial and/or record-keeping duties.

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Background

Agencies are responsible for custodial assets and assets they purchase. It is the responsibility of each agency to make sure fixed assets:
1. Are properly accounted for when acquired.
2. Are properly inventoried annually and safeguarded.
3. Are tagged with an agency identification number.
4. Are properly accounted for at time of disposal.
5. Are properly accounted for if lost or stolen. See the FA – Lost or Stolen Assets policy in this section of
the manual.

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Procedures