Inventory Supply Cover Sheet printable pdf download

INVENTORY OF SUPPLIES

Man Hon Cheung

Phone: 212/669-3710

Fax: 212/815-2126

E-mail:

inventory@comptroller.nyc.gov

Room 200 South

Critical Date

•

July 12, 2013 – Last date to Submit Inventory Report

In order for the Comptroller’s Office, Bureau of Accountancy (BOA) to prepare the City of

New York’s annual financial statements, according to Generally Accepted Accounting Principles

(GAAP), it is required that the City record the total amount of its inventory on its Statement of

Net Assets in the Comptroller’s Comprehensive Annual Financial Report. A letter was emailed

to Fiscal Officers of each Department on May 10, 2013 to give advance notice of the

requirements to report the inventory of supplies to our office. It is therefore necessary that all

City Departments submit the value of its materials and supplies inventory as of June 30, 2013,

based on a physical count. Inventory consists of:

•

The value of materials and supplies on hand for all departments,

•

The value of stamps on hand, and

•

The amount in all postage meters

In addition, Departments that do not have a storeroom (and each department orders its own

supplies) should count the amount of supplies on hand at year-end for all departments to arrive

at the Department’s June 30, 2013 total inventory amount submitted to the Comptroller’s Office.

Departments may use either of two inventory systems: Periodic (physical) or Perpetual to value

their year-end supplies, materials and postage.

•

Periodic - A physical inventory should be taken on June 30, 2013. A written procedure

describing how the physical inventory was taken must be available for review to support

this valuation.

•

Perpetual - Detailed records are maintained on an on-going basis for each inventory

item. The inventory balance is increased as items are purchased or inventoriable costs

are incurred, and the balance is reduced as items are sold or transferred. Cycle counting

may be used with the perpetual inventory system to supplement other control

procedures and to spread the physical counting effort throughout a period. Cycle

counting tests the reliability of the perpetual inventory system by physically counting a

portion of inventory and comparing the quantity to the indicated perpetual records. The

perpetual system generally makes the period-end cutoff process less burdensome.

An estimated value of the supplies inventory is not acceptable under either inventory

system. These instructions apply to expense and capital budget items as well as unissued

supplies in warehouses and supply rooms. The physical count must be observed and attested

to by responsible Department personnel. (See the accompanying sample form). Inventory detail

with calculations, invoices, and other documentation used to compute the value of the inventory

must be retained by the Department to be available for audit. The valuation method used must

be specified, e.g. FIFO,LIFO, Moving-Average Method.

•

First-in, First-out Method (FIFO) - the inventory remaining on hand is presumed to

consist of the most recent costs.

•

Last-in, First-out Method (LIFO) - the inventory remaining on hand is presumed to

consist of the earliest cost.

Inventory Supply Cover Sheet

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