SUBSECTION 3.1.1.1
GENERAL
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SUBSECTION 3.1.1.1 |
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3.1.1.1.1 |
Purpose |
Effective Date: |
July 1, 1998 |
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3.1.1.1.1.a |
The purpose of an inventory system is twofold: 1) to gather and maintain information needed for the preparation of financial statements, and 2) to provide control and accountability over inventories. |
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3.1.1.1.1.b |
The policies contained in this chapter are the minimum requirements to be met by all state agencies. An agency may maintain their inventory system in greater detail, or use ancillary records as supporting documentation or subsidiary records, if desired. The maintenance of detail records beyond the minimums set forth in this chapter is to be accomplished so as not to interfere with meeting these minimum standards. |
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3.1.1.1.2 |
Authority |
Effective Date: |
July 1, 1998 |
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The Budget and Accounting Act contained in Chapter 43.88 RCW requires that the Governor, through the Director of the Office of Financial Management (OFM), design and supervise a modern and complete, Generally Accepted Accounting Principles (GAAP) based accounting system for each agency to the end that all revenues, expenditures/expenses, receipts, disbursements, resources, and obligations of the state are properly and systematically accounted for. To accomplish this goal, inventories are required to be accounted for and reported as resources of the state. |
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3.1.1.1.3 |
Applicability |
Effective Date: |
July 1, 1998 |
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3.1.1.1.3.a |
This chapter is applicable to and binding on all agencies of the state of Washington, unless otherwise exempted by statute. RCW 43.88.020 defines the term "Agency" to mean and include "every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided." |
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3.1.1.1.3.b |
Agencies may request a waiver from complying with specific requirements of this chapter. The request is to be in writing and be approved in writing by OFM before the waiver takes effect. Waivers automatically expire at the end of the fiscal biennium for which they were granted and are to be reapproved in writing to remain in force. |
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3.1.1.1.4 |
Responsible Agency Official |
Effective Date: |
July 1, 1998 |
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The agency head is to designate, in writing, one or more individuals who are to be responsible for maintaining and safeguarding inventories. This individual(s) is to be the agency inventory officer(s). |
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3.1.1.1.5 |
Definitions |
Effective Date: |
July 1, 1998 |
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3.1.1.1.5.a |
Consumable - Assets consumed in the course of an agency’s operations. |
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3.1.1.1.5.b |
Donated - Food and other items held for future distribution. |
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3.1.1.1.5.c |
Food Stamps - The dollar value of food stamps on hand for future distribution. |
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3.1.1.1.5.d |
Inventory Control Point - A specific location, area, building, inventory type, etc., as defined in writing by the agency inventory officer where consumable inventories are aggregated for distribution, valuation, and/or reporting threshold purposes. |
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3.1.1.1.5.e |
Livestock - Animals that are to be consumed either directly or indirectly in the production of goods or services to be available for sale (excludes educational, laboratory, and research animals). |
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3.1.1.1.5.f |
Merchandise - Assets held for sale or resale to other agencies, other governmental entities, or the public. |
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3.1.1.1.6 |
Documentation |
Effective Date: |
July 1, 1998 |
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These inventory policies, in conjunction with Parts 2 and 5 of this manual, contain alternatives for the accounting and reporting of inventories. Once an inventory method is selected, it is to be applied consistently. To ensure consistent application of selected procedures, each agency is to document the method selected for inventory accounting and reporting. |