Consumable Supplies - Inventory Procedures

POLICY 1-18
CONSUMABLE SUPPLIES - INVENTORY PROCEDURES

Issued: 6-75
Revised: 11-99
Approved:

I. GENERAL

Consumable supplies are items that are consumed, or otherwise utilized, in the normal course of operations. These supplies generally may be purchased in sizeable quantities and stored in campus departments for use as needed. A significant amount of these items, in any department, must be inventoried annually and reported as inventory on the year-end financial statements. The State Controller has defined significant, for this purpose, as inventories totaling $35,000 or more per location.

II. RESPONSIBILITIES

A. The Controller is responsible for gathering annual certifications from the President, Vice Presidents, Deans, or Department Directors regarding their consumable supplies and ensuring that any required entries are recorded to the accounting records.

B. The President, Vice Presidents, Deans, Department Directors, or any designees, are responsible for counting and valuing their consumable supplies annually or certifying (in writing) that their value is less than $35,000.

III. POLICIES

Any consumable supplies inventory valued at $35,000 or more per location shall be reported as inventory on the College's year-end financial statements.

IV. PROCEDURES

A. In May or June each year, the Controller will send a notification to the President, Vice Presidents, Deans and certain Department Directors stating the inventory requirements and requesting either an inventory valuation (if $35,000 or more) or a written certification (if less than $35,000.) A certification format will be provided with the request.

B. If an inventory count and valuation is required, the Controller will assist the Department Director, if needed, to ensure the valuation is done correctly.

C. The Controller will ensure that all certification forms or valuation sheets are returned to the Accounting Office and retained for audit purposes.

D. The Controller will record inventory valuation entries to the College accounting records as needed.