INVENTORY PROCEDURE

Roles and Responsibilities

The effective maintenance and reporting of Department fixed assets requires teamwork between offices and divisions. Roles and responsibilities are assigned as follows:

Inventory Duties

Fiscal staff and payment card reconcilers forward acquisition information to the division inventory coordinator and/or designee in a timely manner. New items are tagged within 5 working days of receipt and added to the inventory system within 5 working days of payment.

Inventory Coordinator or designee monitors fiscal reports (provided in COGNOS Warehouse/ODNR Share Folder) that list purchases coded to inventory account codes. Reviews are completed at a minimum of once per quarter.

Designated division personnel completes an annual physical inventory each fiscal year.

Division Inventory Coordinator or designee completes an annual reconciliation comparing the physical inventory report to the OAKS and/or the Internal Spreadsheet inventory.

Division Chief and Fiscal Officer certifies the division inventory is complete and accurate to Office of Budget and Finance (OBF) Inventory Control Specialist by June 30.

OBF staff certifies to DAS that ODNR inventory is complete and accurate by October 1 each year.

Performance and Reconciliation of Physical Inventory

Minimum Requirements

Once per fiscal year each division/office creates/provides a list of tangible personal property items of value with a useful life of 2 years or more located in each employee’s area of responsibility.

For items not already on inventory record as much information as possible (tag number, make, model, serial number). Sign and date physical inventory report and submit to division and/or office inventory coordinator or designee.

Managers have full responsibility for all inventory from their areas of responsibility.

The inventory coordinator or designee reviews the physical inventory report to identify items that were previously recorded in OAKS or on the Internal Spreadsheet that do not appear on the current physical inventory report.

The inventory coordinator or designee obtains a fiscal report showing all purchases coded to an equipment account code and ensure those items have been added to a physical inventory report and follow–up on physical inventory report discrepancies and document results of work.

Addition of New Assets

The following procedures are used when a new asset has been acquired from purchase, lease, donation, confiscation, or transfer from another state agency.

1. Receive new fixed asset.
2. Tag fixed asset as appropriate with inventory tag as-soon-as possible not to exceed 5 working days of receipt.
3. Fill out necessary information on the ODNR Inventory Form.
4. Enter the asset information into the OAKS and/or Internal Spreadsheet as soon as possible not to exceed 5 working days of payment.
5. To determine values of all items for entry into OAKS and/or Internal Spreadsheet use the purchase price or the fair market value.

Note: If Integration Process used, new items added through OAKS do not require the Inventory Form.

Procedures for Inventorying Computer\Electronic Hardware

If any division/office purchases computer hardware (computer CPU, hard drive, monitors, printers, plotters, etc.) through the Office of Information Technology, please use the following procedure to receive possession and inventory the new assets(s).

Purchase computer/electronic equipment – Follow the IT Items Purchase Procedures (12/10/2009) to purchase technology items (expense account 537XXX, 534XXX or 521105 if the item has a processor and/or memory).

Arrival – OIT creates the OIT spreadsheet detailing item manufacturer, model, serial number, division, and ultimate owner (if provided by division) when the equipment arrives at OIT office.

Notification – OIT notifies Division that item has arrived and is available for inventory.

Tagging – Division/office staff opens box, confirms content and tags the inventory item. Inventory Tag is temporarily attached to the item by adhesive tape until OIT has confirmed the proper functioning of the equipment. Division representative signs the OIT spreadsheet to acknowledge their inventory of the item(s). Inventory items shall be entered into OAKS asset management system within 5 working days of tagging.

Setup – OIT prepares device and installs software as required.

Delivery – OIT notifies division that item is available for pickup by Division staff. Division staff permanently affixes inventory tag to item. If OIT is to deliver the item, Division staff signs the OIT Hardware Transport Log upon receipt of the item. OIT makes a copy of the signed OIT Hardware Transport Log and forwards it to the Division Fiscal Officer.

Transferring Assets

The following procedure is used for transferring assets from one person to another or from division/office to another division/office.

Inventory items are to be recorded in the OAKS and/or Internal Spreadsheet as appropriate by the entity accepting receipt of the item.

1. An ODNR Inventory Form is completed if there is a change in the Location Code or Department ID in OAKS.
2. Both the transferring and receiving division's representatives sign the ODNR Inventory Form.
3. Receiving division/office enters transfer information into OAKS and/or Internal Spreadsheet as-soon-as possible not to exceed 5 working days of transfer.
4. Transferring division/office checks OAKS for transfer within 10 working days.
5. Both divisions must maintain written copies of ODNR Inventory Form.

Retirements – Salvaged Items

Unless exempted by law, the following procedure is followed when retiring an asset.

Retirements to State Salvage (Non-Technology Items)

1. Notify other divisions/offices that items are available for transfer.
2. Complete Surplus Property Turn-In Document (ADM 3672).
3. Fax the Property Turn-In document(s) to State Salvage at (614) 466-9024.
4. State Salvage decides which items they want transported to their facility.
5. State Salvage marks a line through the item(s) they do not feel they could sell.
6. List all of the item(s) being taken to State Salvage on a Surplus Property Turn-In Document(s).
7. List the item(s) that State Salvage lined out on a separate Surplus Property Turn-In Document(s). This is the list of items for on-site disposal.
8. Schedule drop-off of assets at the surplus warehouse by calling (614) 466-7636.
9. Salvage items are taken to the surplus warehouse at 4200 Surface Road Columbus, OH. State Salvage staff signs the Surplus Property Turn-in Document. A signed copy is forwarded to the division/office Inventory Coordinator or designee.
10. The Surplus Property Turn-in Document(s) for items to be disposed on site is signed and retained for your records
11. Retire asset in OAKS and/or Internal Spreadsheet.

Retirements – Fountain Square

1. Each Division/Office notifies Fountain Square staff that items are available for transfer. If not claimed in business five days, the items are processed for salvage.
2. Complete Surplus Property Turn-In Document (ADM 3672).
3. Fax the Property Turn-In Document(s) to State Salvage at (614) 466-9024.
4. State Salvage decides which items they want transported to their facility.
5. State Salvage marks a line through the item(s) they do not feel they could sell.
6. List all of the item(s) being taken to State Salvage on a Surplus Property Turn-In Document(s).
7. List the item(s) that State Salvage lined out on a separate Surplus Property Turn-In Document(s). This is the list of items for on-site disposal.
8. Fax the dispose on-site Surplus Property Turn-In Document(s) back to State Salvage for signature.
9. Once the signed form is received the item(s) are retired from OAKS and/or internal spreadsheet.
10. The dispose on-site items are made unusable and thrown in the dumpster.
11. Contact the Department’s Records Service Manager at 265-6840 to schedule a pick-up of the items to be transported to the surplus warehouse.
12. Scan/Fax the Surplus Property Turn-In Document(s) to the Records Service Manager at (614) 265-7031.
13. The Surplus Property Turn-In Document(s) is signed by the Office of Information Technology staff at the time of pick up of assets.
14. The item(s) are retired from OAKS and/or internal spreadsheet.

Retirements – Technology Items

1. Refer to OIT procedure.
2. Contractor picks up the items and signs the Surplus Property Turn-In Document (ADM3672).
3. Retire asset in OAKS and/or Internal Spreadsheet.

Retirements – Donations

Equipment to be donated has to be approved by DAS prior to donation. Complete the Surplus Property Turn-In Document (ADM 3672) and fax to state salvage.

1. Ensure a letter, signed by a representative of the receiving organization, is obtained documenting each item and date of the donation.
2. Inventory coordinator or designee documents what authority they have to make a donation to the organization. The Division Chief, Fiscal Officer and Division Inventory Coordinator or designee sign this documentation.
3. Complete the Surplus Property Turn-In Document (ADM 3672) and attach the letter referenced above.
4. Retire asset in OAKS and/or Internal Spreadsheet.

Retirements – Auctions

1. Ensure proper authority has been granted by ORC or DAS to the entity for the auctioning of items.
2. Ensure item goes to highest bidder (actual auction or sealed bid).
3. Ensure revenue is deposited into proper fund.
4. Retire asset in OAKS and/or Internal Spreadsheet.

Retirements – Dispose on Site

1. Ensure asset is made unusable and thrown in dumpster the day of trash pick-up.
2. Ensure witness verifies the above.
3. Sign the Surplus Property Turn-In Document (ADM3672) for items disposed on site and retain a copy for your records
4. Retire asset in OAKS and/or Internal Spreadsheet.

Retirements – Cannibalized

1. Complete the Surplus Property Turn-In Document (ADM 3672) and send form to state surplus for approval.
2. Once approved, discard or disassemble asset.
3. Retire asset in OAKS and/or Internal Spreadsheet.

Donated Items

1. Donation is only allowed to organizations listed in ORC Section 125.13(E)
2. Complete the Surplus Property Turn-In Document (ADM 3672) and submit to DAS for approval
3. Once DAS has granted approval, donation can take place
4. Ensure a letter, signed by a representative of the receiving organization, is obtained documenting each item and date of the donation.
5. Inventory coordinator or designee documents what authority they have to make a donation to the organization. The Division Chief, Fiscal Officer and Division Inventory Coordinator or designee sign this documentation.
6. Attach the letter referenced above to the approved Surplus Property Turn-In Document (ADM 3672).
7. Retire asset in OAKS and/or Internal Spreadsheet.

Trade-Ins

1. Complete the Surplus Property Turn-In Document (ADM 3672).
2. Attach at least one quote (preferably three) on vendor letterhead documenting the amount of the trade-in offer(s).
3. Submit the Surplus Property Turn-In Document (ADM 3672) and the above documented quotes to DAS for approval.
4. Once DAS has granted approval, the trade-in can occur.
5. Retire asset in OAKS and/or Internal Spreadsheet.

Missing Items

1. Temporarily designate item as “Out of Service”.
2. Document in memo form the circumstances involving the item(s): (a) Last time item seen. (b) Where item was normally found (c) Responsible employee.
3. The memo should be signed by the employee, inventory coordinator or designee and Division Chief.

At the conclusion of the next physical inventory, if the item cannot be located, process to remove item from “current” inventory should be followed.

Stolen Assets

For items that are stolen or missing/lost, use the following procedure.

1. Refer to the department’s “Suspected Illegal Activity Policy” on the department’s intranet to determine if the item should be reported.
2. Contact the State Highway Patrol.
3. Complete Form Number 0413 “THEFT REPORT OF STATE OWNED PROPERTY”, attach Form Number 0414 “MULTIPLE THEFT REPORT” for theft of more than one item.
4. Send completed original form 0413/0414 to the Office of Law Enforcement and copies to the following:
   1. Division/Office Chief
   2. External Audits
   3. Division/Office Inventory Specialist
   4. Division/Office Fiscal Officer
   5. If Law Enforcement Division, forward to lead Law Enforcement Officer
5. Use the asset disposition code: “Disposal Due to Theft” in OAKS to record the event.

Record Retention

File and maintain signed copies of all inventory documents according to ODNR record retention schedule.

Exit Inventory

An Exit Inventory is conducted within 2 weeks of the last day of employee service.

1. Division Inventory Specialist or designee ensures that all personal property records are updated when an employee changes positions within the agency or when an employee leaves state service.
2. The employee takes a physical inventory of property located in his/her area of responsibility.
3. The supervisor reconciles the current inventory list with the previous physical inventory list. The list is signed and dated by the employee and supervisor.
4. The supervisor indicates the new location and custodian for all items on the list.
5. The Inventory Specialist or designee updates the records in OAKS and/or the Internal Spreadsheet as needed.

The exiting employee turns over all state property to their supervisor upon their last day of service.