1004.6 Physical Inventory of Equipment

Subject Area: Accounting
Responsible Office: Financial Services
Sponsor: Associate Vice President for Finance
Originally Issued: December 1989
Revised: October 2006, April 2010, February 2014, December 2014
Refer Questions To: Maru Mendoza, 773-702-3690

Purpose: To ensure physical inventories of equipment are performed on a regular basis and in compliance with federal regulations for equipment purchased with federal funds.

Policy

1. Financial Services is responsible for ensuring that physical inventories of equipment are performed on a regular basis.

2. Individual departments are responsible for conducting physical inventories of equipment.

3. An annual physical inventory must be made for all University equipment with a net book value of $50,000 or more.

4. University equipment with a net book value less than $50,000 must be physically inventoried annually based on a statistical sample of equipment provided by Financial Services.

5. Equipment maintained by the University and owned by the federal government or other external agencies must be physically inventoried on an annual basis.

6. Equipment purchased with federal funds must be inventoried at least once every two years.