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:
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Does the equipment still exist?
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Is the equipment in usable condition?
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Is the equipment being used?
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Is the location correct?
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Does the asset tag on the equipment match the asset tag number provided on the inventory form?