NUMBER: 5.4.02
DATE: 10/23/98
REVISION: 05/08/03  


The purpose of this policy is to establish procedures and guidelines to be used by Property Services within the University of Arkansas for Medical Sciences (UAMS) for conducting annual physical inventories of property which will enable the office of Financial Services, Property Accounting Section to write off property no longer in existence, to check the accuracy of the perpetual inventory process, and to provide current and accurate data on all UAMS property.


Act 876 of 1973 states that the Director of the State agency shall be accountable for all State property under his/her control and shall be responsible for keeping and maintaining records of all such property. All UAMS departments must know what property is assigned to them and for what property they are accountable. All UAMS departments will be required to conduct an annual inventory of all property within the department, pursuant to Act 876. At the time of inventory, all property records must be brought up to date to reflect current available property and to reflect current location of property, department assignment of property, and physical presence. The UAMS Property Services department personnel with the assistance of the department personnel shall conduct departmental physical inventories. Property to be inventoried, as defined by Act 876, shall include any item of furniture or equipment, which has a cost of $2500.00 or more, and has a useful life of two years or more, or is considered to be material.  For more details concerning the UAMS capitalization policy please review Administrative Guide policy 8.5.01.


  1. Property Services shall notify each UAMS department when it is time for their annual physical inventory for their department. Departments may also be notified by Property Services of any special audits, which may be required. Notification will be via E-mail and / or written memo to all Department Heads, Property Contact Persons and listed Business Officers.
  2. Department Directors shall be responsible for assigning personnel to assist Property Services staff in a room-by-room physical inventory of all property assigned to and located within the department and to verify the physical inventory against the Inventory Listing. Movement of property should be kept to a minimum during the physical inventory process.
  3. The physical inventory or scanning process will update the building-room location electronically. If the correct location of the property is off-campus, the departmental personnel will be asked to produce a Property Located Off-Campus Form identifying the appropriate property. It is necessary to update these forms yearly during the physical inventory process.
  4. After the department areas have been physically inventoried or scanned, an exception reporting noting items not found will be produced by Property Services. The departmental personnel assisting in the physical inventory shall document the status of the not located property by completing either a Report of Transfer of Property Form or a Release of Accountability Form, whichever is appropriate.
  1. Departments must send all appropriate supporting documentation to Property Services related to any request to change or correct the status of the department's Property Inventory. Supporting documentation can include, but is not limited to, copies of Purchase Orders, Vouchers, Invoices, Outgoing Shipment Forms, and Inter-Departmental Transfer Forms.
  2. Upon completion of the physical inventory process, a Letter of Property Responsibility should then be signed and dated by the Department Head. Copies should be made and kept of all inventory documents for departmental records.
  3. The completed inventory should then be submitted to Property Services. It should include the following:
    1. Letter of Property Responsibility
    2. All pages of the verified and corrected Inventory Listing
    3. All appropriate Property Services forms
    4. All appropriate supporting documentation


  1. UAMS Policy 5.4.01, Property Control Policy, Procedure 11
  2. UAMS Policy 5.4.02, Property Inventory Procedures
  3. UAMS Policy 5.4.02, Property Inventory Procedures