Annual Inventory Procedures
Departments will complete an inventory of their major and minor equipment on an annual basis. The annual equipment inventory audits are completed for the following reasons:
The North Dakota State Law (Century Code Chapter 44-04-07) requires each department to perform an annual equipment inventory of all major equipment.
All major equipment (>$5,000) is maintained in the fixed asset subsidiary ledger and is reconciled to the general ledger on a monthly basis. Performing an annual inventory ensures that Asset Management’s records are accurate.
All minor equipment (<$5,000) is updated via the annual audit for insurance purposes. Each department is responsible for maintaining an accurate listing of Minor Equipment. If there is equipment in your department that is not on the Minor Equipment listing, it is NOT insured and will not be covered in the event of a loss. Failure to maintain a comprehensive Minor Inventory List could result in substantial loss to the department if an insurance claim is filed and the equipment was not properly documented. It is critical that the Inventory Coordinator in the department updates this list on a regular basis.