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A Physical Count is performed each time an item
is received, before the item is added to the inventory. The
costing method used is the inventory averaging method.
During the months of April, May and June, a
physical inventory of every item is accomplished a little at a
time. At the end of this physical count, a print out of the
inventory is made and distributed as follows:
1 copy remains in the
Storeroom
1 copy goes to accounting
services
2 copies go to the Internal
Auditor (1 for State Auditor)
After the copies are made, no changes are made
to the inventory on the computer until after the Internal Auditor
has performed his annual Fiscal Year end audit. During the
interim period when the copies are made and the Internal Auditor
performs his audit, notes are kept on any items that are removed
from the storeroom, and items that are received are held.
Once the auditor has approved the inventory, the computer is
updated to reflect the receipts that were held and issues that were
made.
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