40-000-4
BOT 09-20-07
INVENTORIES (PROCEDURE)
Inventories shall be adequately safeguarded against loss, theft, physical deterioration or
misuse by being kept in appropriate enclosures, access to which is granted only to
authorized personnel.
Responsibilities for quantities shall be fixed by assigning custody of inventories to
specific individuals.
The individual responsible for receipt, storage, and issuance of goods shall be
independent of responsibility for purchases, sales, and inventory records.
Personnel shall be required to report on obsolete, unusable, and overstocked items, and
approval shall be required before such inventories are disposed of.
Perpetual inventory records shall be maintained, both in dollars and in quantities, and
periodically balanced to control accounts.
Periodic physical inventories shall be taken and balanced to the perpetual records.
a. Written instructions shall be made for such counts.
b. Material differences shall be investigated and explained.
The inventory record shall require approval of management.
Inventories shall be covered by insurance, and employees with access to significant
inventories shall be bonded.
Employees with inventory, shipping, and receiving responsibilities shall be required to
take vacations and other employees shall be required to perform those functions when an
employee is absent.
Access to computerized inventory records shall be limited to those with a logical need for
such access.
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