Business Processes for Internal Control Manual
(Policy, Procedure, & Processes for Division of Fiscal Affairs)
#SSUFAM00007
Title: Physical Inventory (Equipment Audits)
Date Created:
Functional Area: Fixed Asset Management
Last Updated: 26 March 2009
Purpose: To verify the location of University equipment as recorded in inventory
record
Documents (Info) Needed:
Primary Position Responsible:
Senior Accountant
Reviewed By <or> Reviewed By:
Process Frequency:
Yearly
Prerequisite Process:
Subsequent Process:
POLICY:
In accordance to BOR Policy 11.4, Savannah State University, a unit of the University
System of Georgia, must conduct a mandatory physical equipment inventory annually. The
results of this inventory will be updated into the equipment inventory systems utilized by
the University in order to satisfy state reporting requirements. These results should change
the status or condition of the item if required, such as missing or poor condition.
When the data file is submitted as of the end of the fiscal year, each item contained in the
file should have been part of a physical inventory during that fiscal year. This allows for
periodic physical inventories to be conducted on small segments of the institution’s
property throughout the fiscal year to eliminate the need for conducting a complete
inventory during the last month of the fiscal year.
Additionally, in accordance to BOR Policy 11.5, the reporting requirements for the
equipment inventory program data to DOAS involve the submission of an equipment
inventory data file annually. This data file is prepared “as of June 30th,” which is the close
of the fiscal year. It is expected that this data file will be accurate, and that the status of
inventory items included in the file has been verified by an actual inventory during the
fiscal year being closed.
To allow sufficient time for updates to the institution’s property inventory system, the
annual submission of the data file generally occurs during September after the close of the
fiscal year that occurs on June 30th. The actual submission deadline date varies by year, but
is generally near the middle of September. The data file should be submitted as an
attachment to an email message. The file is submitted to the Georgia Technology Authority
(GTA), which is the consolidating agent for the Department of Administrative Services
(DOAS)*. A copy of the file should also be submitted to OIIT. Further, BOR Policy 11.6
requires that during the annual audit conducted by the State Department of Audits and
Business Processes for Internal Control Manual
(Policy, Procedure, & Processes for Division of Fiscal Affairs)
#SSUFAM00007
Accounts, a sample listing of equipment from the inventory system may be physically
checked for location, decal, and accuracy of information.
PROCEDURE:
All furniture and equipment with an acquisition cost of $3,000 or more and owned by
Savannah State University must be inventoried at least once each fiscal year. The Savannah
State University Comptroller’s Office coordinates an annual physical inspection of all assets
in the capital ledger. The staff assigned within the Comptroller’s Office coordinates an
annual sample verification of the small value purchases ($3,000 - $4,999) with the office of
University Auditing and Advisory Services. All assets with a value of $5,000 or more are
individually inventoried each year by the Comptroller’s Office. The procedure will occur as
following at least once annually:
1. The accountant assigned to Fixed Asset Management will run an equipment
inventory report/query for all assets on the ledger.
2. The physical inventory will be performed on all of the assets on the listing.
3. Updates will be made to the Asset Management Module based upon the results of
the physical inventory.
4. Follow SSUFAM00008 for lost, stolen, or missing inventory items
5. Document the physical inventory process, in preparation for the transmission of the
year-end report to DOAS, in compliance with BOR Policy.