All reports that list actual stock levels should be checked against the original stock sheets to verify accuracy of entries. Stocks held for third parties or on consignment should be properly identified. These items of stock should be counted in the same manner as the department's own stock. However, these items of stock are not to be included in the department's stock sheets or inventory valuation. Where inventory records are maintained, the physical counts are to be compared with such records.
Any discrepancies are to be investigated immediately.
The original stock sheets must be retained by the department in a secure place for a minimum period of five years. 7 Adjustment of Stores Discrepancies Where a stock count discloses a discrepancy between the physical and theoretical stock levels, the inventory records are to be altered as soon as the physical count is verified. All inventories which are valued for the purpose of inclusion in the University's annual financial statements are to be valued at the lower of cost and net realisable value. As an exception to this policy, the cost of items that are not ordinarily interchangeable or goods or services produced and segregated for specific projects must be assigned by using specific identification of their individual costs. The weighted average method determines the cost of each item of inventory on hand from the weighted average cost of items on hand at the beginning of the period and the items purchased or produced during the reporting period.