S.C. Code Regs. § § 19-410.3

Current through Register Vol. 48, No. 11, November 22, 2024

Section 19-410.3 - Inventory and Accounting Systems

A. Scope of Accountability System.

All donable property approved for transfer, and donable property received, warehoused, and distributed by the State agency is accounted for under a full accountability system that meets the requirements of Section 3-9-10, South Carolina Code and Public Law 94-519, as amended.

B. Checking Property into SASP Custody.

(1) Verification of property. Shipments received are verified promptly. Property is received in an area which is separated from the rest of the distribution center in order that there will be no possibility of mingling with other items available to the donees.

(2) Documentation. The shipment is physically checked against the shipping documents and the "Application for Donation of Surplus Personal Property" (Form 123).

(3) Record preparation. Identification tags are prepared and attached to the individual items. The documents are signed by the stock clerk and forwarded to the office where the inventory clerk prepares the inventory record.

(4) Overages and Shortages. Property received is verified by a physical count with the Holding Agency's shipping document. The "Application for Donation of Surplus Property" (Form 123) is also verified to the count of property received. A SF 123 will be prepared and submitted to the appropriate GSA regional office for line item overages of $500.00 or more in accordance with FPMR 101-44.115.

(5) Recording and reporting difference. If the count of property received does not agree with the Holding Agency's shipping document, an overage and shortage report is prepared and delivered to the Holding Agency by screener for reconciliation with PDO. Over and short items not reconciled are reported to GSA regional office in accordance with FPMR Paragraph 101-44.115. Differences between items listed on Form 123 and the physical count are handled in the manner outlined above. Any such differences are also reflected by the monthly "Report of Surplus Property Received."

C. Periodic Verification of Property on Hand.

(1) Verification. The inventory or stock record cards are checked with the physical count of inventory of personal property on hand once each year.

(2) Recording of difference. Any difference between the stock cards and the actual count are reported to the distribution center manager, who, after a thorough check as to their correctness, presents these cards to the Surplus Property Officer for final determination.

(3) Reporting. Differences will be reported as in (2) above.

D. Inventory Adjustments.

(1) Report Form. Any necessary adjustments to the inventory record cards will be noted on the Inventory Adjustment form.

(2) Reporting variations.

(a) The Inventory Adjustment form will be presented to the Surplus Property Officer by the distribution center manager for inspection together with the appropriate inventory card. The Surplus Property Officer will sign those Inventory Adjustment forms requiring adjustment or take other corrective action.

(3) Adjustments. Adjustments will be made after review by the Surplus Property Officer and completion of the Inventory Adjustment form. The inventory record card will reflect the necessary adjustments. Both records will be retained in appropriate files in numerical order for a minimum period of three years.

(4) Written authority. The Surplus Property Officer will authorize adjustments as outlined in (3) above. This will apply, not only for annual inventory adjustments, but also for other necessary adjustments as well.

(5) Disposal of property of no value to program.

(a) In accordance with the procedures and requirements of FPMR 101-44.205, property will be reported to GSA for transfer to another state or disposed of by public sale, destruction or abandonment.

(b) Appropriate records are maintained to cover disposals described above.

E. Tracing Property from Receiving Document to the Issue Document.

(1) Method. At the time the inventory record cards are prepared, the state serial number of the Form 123 and line item number is entered on these cards and the identification tag which is attached to the item. When a pre-numbered warehouse issue sheet is prepared, the state serial number and line item number is also entered thereon. The warehouse issue sheet number and the date is noted on the inventory record card. Each inventory record card bears only one state serial number. When the items listed on an inventory record card are all issued, the card is filed in an inactive file. In this way, property is readily traced from the receiving document to the issue document.

(2) Reference to exhibit of inventory of property card. For the use to which the inventory card is put, see E(1) above.

F. Systematic Means of Determining Quantity of Various Types of Property Donated to Individual Donees.

(1) Description of files for each donee. Individual donee files are maintained on an annual basis which contain copies of all warehouse issue sheets showing property issued, service charges, etc. Separate files for $5,000 or over acquisition cost items and all passenger motor vehicles are maintained (see Part X of the State Plan).

(2) Other records (if any) of property donated to each donee. A correspondence file and an invoice file is also maintained by donee.

G. Accounting System.

The Surplus Property Service Fund utilizes basic accrual accounting practices outlined in Governmental Accounting, Auditing and Financial Reporting as compiled by the National Committee on Governmental Accounting (1968).

On Deposit accounts are cash accounts with documented deposits and withdrawals.

Accounts Receivable account has all billings and payments received with net amount owed as a balance.

Buildings account has all expenditures for permanent construction and additions to structures used at the Surplus Property site.

Accumulated Depreciation-Buildings account has amount of expiration of the useful life of the buildings using the straight-line method with a twenty year base.

Office Equipment account has expenditures for non-expendable equipment that is inventoried, tagged and accounted.

Accumulated Depreciation-Office Equipment account has amount of expiration of the useful life using the straight-line method with a ten year base.

Motor Vehicle Equipment account has amount of expenditure for motor vehicle equipment.

Accumulated Depreciation-Motor Vehicle Equipment account has expended amount of useful life using straight-line method with four year useful life.

Allocated To/From State General Fund account has amounts received or returned to the State General Fund from the Surplus Property Service Fund.

Retained Earnings account shows accumulated amount of equity retained in operations.

Revenue From Operations account shows amount of sales.

Expenses (cash) account shows amount spent for operating costs.

Expenses (accrual) account shows amount applicable to accounting period.

The accounts for the Surplus Property Service Fund is kept by the Comptroller General of South Carolina and a corresponding ledger system is kept by the Office of Internal Operations, S. C. Budget and Control Board. Fixed asset accounts are kept also at the Office of Internal Operations, S. C. Budget and Control Board where amounts for purchase of these assets are maintained by source fund.

All accounts are periodically audited by internal auditors and the State auditing staff to ascertain to the correctness of the Surplus Property Service Fund as stipulated by GAAP standards.

The State Agency is furnished detailed operating statement and balance sheet monthly, reflecting the current financial condition of the Agency.

All accounting records are maintained at the central office of the Office of General Services.

S.C. Code Regs. § 19-410.3

Amended by State Register Volume 21, Issue No. 6, Part 1, eff June 27, 1997.