![[FSU Seal Image] - Return to Home](/design/fsudesign/images/headerFSUSeal.png)
FSU / Controller's Office / Property Accounting / Frequently Asked Property Questions - Inventory
Frequently Asked Property Questions - Inventory
1. Why do I have to do a physical inventory every year?
2. How do I know when I am required to do my department's inventory?
3. What is involved in performing my department's physical inventory?
4. What do I do if I locate an asset, but I am unable to scan it?
5. I'd like to take an item off campus, do I need to obtain permission to do so?
6. What do I do if I cannot find an asset?
1. Why do I have to do a physical inventory every year?
An annual inventory of major accountable property is an aspect of sound financial management of any organization. Additionally, the annual physical inventory is required by Florida Statutes and FSU Policy.
2. How do I know when I am required to do my department's inventory?
Each year, Property Accounting Services will notify departments of their inventory start and end dates.
3. What is involved in performing my department's physical inventory?
The requirements of the University’s annual inventory are detailed in the training classes provided by Property Accounting Services each month. Additional information about these classes may be found on the Property Accounting website.
4. What do I do if I locate an asset, but I am unable to scan it?
Assets can still be inventoried even if they will not scan. Generally, there are two ways to do this. The best method is to request a new tag y completing and submitting the Request for Duplicate Tag form (PA 01).
In special circumstances, an alternative to scanning an item is to use the Inventory Certification Form (IC 852) to certify that the asset has been physically inventoried. Generally, departments are only allowed to certify the following types of assets: verified items at satellite locations, assets with the special assigned tag 09 number, and inventory items that are off-site indefinitely. Additionally, a department may only certify 15 assets per year.
When certifying assets, submit the original IC 852 form with the required information (signatures, locations, dates verified, and descriptions) to Property Accounting Services, Inventory Section. Do not send copies or faxes of this form.
5. I'd like to take an item off campus, do I need to obtain permission to do so?
Yes. The removal of University property from campus sites must be authorized in writing prior to its removal.
Items removed for a period of one year or less should be authorized by the department's Property Manager in writing utilizing the Equipment Use Request Form (ER 244). A copy of the completed ER 244 form should be sent or faxed to Property Accounting Services (fax 644-6201) when the property item is checked out. The department's Property Custodian will retain the original form until the item is returned, and then send it to Property Accounting Services, retaining a copy of the form for the department.
The ER244 form associated with an item removed for a period of one year or less will automatically expire on June 30th of the fiscal year in which the form was completed. For the period of use, put today’s date in the “from” field and 6/30/20xx in the “to” field. These forms must be updated every fiscal year.
Property items removed in excess of one year require that the completed ER 244 form be signed by the user, the department's VP, Dean, or Director before it is forwarded to Property Accounting Services. The ER 244 form associated with an item removed for year or more does not expire. However, an Inventory Certification Form (IC 852) must be completed for each fiscal year that the item is out. In the “from” field put today’s date and in the “to” field write the word Indefinite.
FSU property may be removed from campus for use by other universities, contractors, consultants, students etc. if use of the item is required for work and in support of FSU. The removal must be approved by the Dean/Director of the department.
6. What do I do if I cannot find an asset?
When items are not located during inventory you must fill out two forms: an Accountability Release Form (AR 212) (with box “i” marked) and an Inventory Shortage Police Report.
Send both the AR 212 form and the inventory shortage form to Property Accounting Services. The AR 212 form must contain the case number assigned by the police and have the Inventory Shortage Police Report attached.
7. What are the consequences to my department if our physical inventory is not completed in a timely manner and/or we do not meet the University's inventory compliance requirements?
The annual physical inventory, along with the asset reconciliation, must be completed by June of each year.
If your department was unable to account for 5% of your total inventory count or seven assets (whichever is greater) or if your department failed to account for 5% of your total inventory dollar value or $20,000 (whichever is greater) non-compliance will be declared.
This non-compliance will result in a fine to the department. This fine will be assessed and issued by the Provost. The initial fine will be $5,000, with an increase of 10% for each successive year the department does not meet inventory requirements.
Departments have until July 15th to appeal in writing if there were extenuating circumstances causing the non-compliance. Appeals should be submitted to the Provost. Fines are issued in August, when the department’s budget and/or cash will be reduced. If the fine cannot be assessed to the actual non-complying department due to budget restrictions or undue hardship, the fine will be assessed to the department it reports to.
Additionally, assets missing for a full two years will be written off from the University’s inventory in December. When an asset is written off and removed from the inventory system the department will be notified of their non-compliance and potential fine.
Non-complying departments will be referred to the Office of Audit Services to facilitate a positive change through consulting, audits and investigations. Additionally, the Provost will be notified in writing of the department’s poor performance.
In the fiscal year following non-compliance, the department’s annual physical inventory will be scheduled prior to all departments in compliance.
Are there other questions that need to be answered here? If so, let us know.
