To provide guidelines with regard to university inventories to ensure compliance with GASB, Office of the State Controller and university requirements.
Authority:
Vice Chancellor for Business Affairs
History
Updated December 17, 2013; Updated December 1, 2013; Updated July 1, 2007; Effective November 1, 1988; supersedes former Administration Policy No. ACG2.50, “University Inventories”
Source of Authority:
GASB Codification, Section 1600.127A, Office of the State Controller
Related Links:
N/A
Responsible Office:
Controller
Policy Details:
Purpose
To provide guidelines with regard to university inventories ensuring compliance with GASB, Office of the State Controller, UNCW’s Office of the Controller, and other university requirements.
Scope
This policy applies to all departments holding inventory for resale with an aggregate value of $1,000 or more. Inventory as defined for this policy includes, but is not limited to, auxiliary stores inventory, pharmacy prescription and over - the-counter drug inventory, and facilities/physical plant shops parts inventory.
Policy
Responsibilities
Departments meeting the scope of this policy shall conduct an annual physical count of the inventories on hand and report the value (as of June 30) to the Office of the Controller. Departments shall perform this physical inventory and calculate the June 30 value, in accordance with instructions provided by the Office of the Controller.
The Office of the Controller will schedule the appropriate dates/deadlines, spot check the inventory during the counting process, and review calculations used to value the inventory as needed.
Departments Previously Not Required to Perform Inventory Counts
Any department that meets the scope of this procedure but has not been requested to perform a physical inventory in previous years should contact the Controller by the end of the first week in May. The Office of the Controller will then include the department when scheduling appropriate dates/deadlines for performing the physical count.
To help ensure university compliance, the Office of the Controller will contact Vice Chancellors annually requesting them to identify any possible new areas that may have inventory meeting the annual inventory requirement.
Questions
Any questions on whether a department should prepare for, or be excluded from, a physical inventory should be directed to the Controller.
In addition, any questions concerning the performance of a physical count or related procedures should be directed to the Office of the Controller.
Inventory Valuation
The university utilizes the First-In, First-Out (FIFO) method for inventory purposes. FIFO is an inventory cost flow whereby the first goods purchased are assumed to be the first goods sold so that the ending inventory consists of the most recently purchased goods. This is the method to be used when pricing the inventory items. No other method should be utilized.
Computerized Inventory Systems
It is suggested that any inventory system purchased allow for a cost valuation method consistent with policy statement D. Assistance is available from the Office of the Controller to ensure that the systems under consideration allow for this valuation method. If the system chosen does not allow for inventory valuation per university policy, the department must determine how they will convert the system-generated inventory value at fiscal year-end.
