Business and Financial Policies and Procedures
 

Complete a Biennial Inventory

Before You Begin

University and state regulations require each unit to complete and certify a physical inventory of University equipment at least once every two years. The original cost of equipment, not the depreciated value, determines whether the equipment is subject to state property control regulations and must be included in the physical inventory.

Make sure the unit contact has attended Biennial Physical Inventory of Equipment Training and that they train everyone involved in the biennial inventory.

Begin

To conduct a biennial inventory:

  1. University Property Accounting and Reporting (UPAR) will notify you by e-mail that your unit must conduct a physical inventory of the items on your equipment records.
  2. Run the Fixed Asset by Org report in EDDIE (Enterprise Data Delivery and Information Environment).
  3. Compare each asset record on your Fixed Asset by Org Report with the movable equipment assigned to your unit and/or located within its physical facility. Verify that all information recorded for each item is accurate.
  4. Investigate ALL equipment located in your unit's assigned facility space. If your unit uses alternative verification methods (such as bar coding), you must still verify all the equipment's attributes.
  5. Make attribute corrections in FABweb. Condition codes are important because they are used in the calculation of the F&A rate charged to sponsored projects.
  • If any items cannot be located, change the Condition Code in FABweb to "P" for "pending resolution."
  • Update the condition code for items that are unused or needed for emergency or other standby purposes as "not available, not in use" (availability code "N").
  • Update the condition code for items not needed for standby purposes as "surplus" (availability code "S"). If the item is available for use by other units, update the code as "available" (availability code "A").
  1. Submit the certification letter that was included in the e-mail from UPAR by the due date given in the physical inventory e-mail.
  1. Resolve all items that are in "pending resolution" status and update records in FABweb by the due date given in the physical inventory e-mail. If your unit fails to conduct the biennial inventory or the unresolved discrepancies are significant, your Vice President, Vice Chancellor, or Provost will be notified and asked to help resolve the discrepancies.

 

Related Policies and Procedures

Process Unlocatable Equipment
Comply with Unit Head Property Custodial Responsibilities

Additional Resources

Physical Inventory Check List
Physical Inventory Certification Letter
Property Accounting - Physical Inventory of Equipment
Classify Equipment and Property
Physical Inventory of Equipment Manual
EDDIE
Accessing EDDIE Step by Step

 

Last Updated: December 14, 2011 | Approved: Senior Associate Vice President for Business and Finance - June 2011