Purpose & Selection
A physical inventory is performed each year to verify the existence, condition, and location of University assets. In accordance with University Policy 1004.6 - Physical Inventory of Equipment, an asset will be selected for physical inventory if it meets one of the following selection criteria:
- All assets with a net book value of more than $50,000
- All equipment maintained by the University and owned by the Federal government or external agencies
- All equipment purchased with federal funds will be inventoried over a two year cycle
- A statistical sample of assets with a net book value less than $50,000
The physical inventory is also an opportunity to verify that the University of Chicago property tag is still affixed to the equipment in a visible location. If the tag is damaged or missing, a replacement tag will be issued. The following questions are answered during the annual physical inventory process:
Does the equipment still exist?
Is the equipment in usable condition?
Is the equipment being used?
Is the location correct?
Does the asset tag on the equipment match the asset tag number provided on the inventory form?