§ 109-1.5110 Physical inventories of personal property. ( a ) Physical inventories of those categories of personal property as specified in paragraph (g) of this section shall be conducted at all DOE and designated contractor locations.
( b ) Physical inventories shall be performed by the use of personnel other than custodians of the property. Where staffing restraints or other considerations apply, the inventory may be performed by the custodian with verification by a second party.
( c ) Detailed procedures for the taking of physical inventories shall be developed for each DOE office and designated contractor. The OPMO/PA shall review and approve the DOE office and contractor procedures.
( d ) The conduct of a physical inventory will be observed, or follow-on audits made, by independent representatives, *e.g.,* finance, audit, or property personnel, to the extent deemed necessary to assure that approved procedures are being followed and results are accurate. These observations or audits shall be documented and the documentation retained in the inventory record file.
( e ) The DOE capitalization threshold for items acquired prior to October 1, 2011 is $50,000. For items acquired on or after October 1, 2011, the threshold is $500,000.
( f ) Procedures that are limited to a check-off of a listing of recorded property without actual verification of the location and existence of such property do not meet the requirements of a physical inventory.
( g ) The frequency of physical inventories of personal property shall be as follows: ( 1 ) Equipment—biennial 98%. Inventory accuracy.
( 2 ) Sensitive items—annual 100%. Inventory accuracy.
( 3 ) Stores inventories—annual.
( 4 ) Precious metals—annual 100% Inventory accuracy.
( 5 ) HRPP—annual 100% Inventory accuracy.
( 6 ) All other accountable property every three years 98% Inventory accuracy.
( 7 ) Administratively controlled items—There is no formal Department requirement for the performance of physical inventories of this property. However, OPMOs/PA's determines inventory requirements based on management needs.
( h ) Physical inventories shall be performed at intervals more frequently than required when experience at any given location or with any given item or items indicates that this action is necessary for effective property accounting, utilization, or control as directed by OPMO/PA.
( i ) Physical inventories of equipment may be conducted by the “inventory by exception” method. The system and procedures for taking physical inventories by this method must be fully documented and approved in writing by the OPMO/PA.
( j ) The results of physical inventories shall be reconciled with the property records, and with applicable financial control accounts.
( k ) The results of physical inventories shall be reported to the OPMO/PA.
( l ) Physical inventories of equipment and stores inventories may be conducted using statistical sampling methods in lieu of the normal wall-to-wall method. The sampling methods employed must be statistically valid and approved in writing by the OPMO. If use of the statistical methods of physical inventory does not produce acceptable results, the wall-to-wall method shall be used to complete the inventories.