Requirement for a Physical Inventory

As a recipient of federal grants and contracts, OSU is required to be in compliance with the Office of Management and Budget Circular A-110, Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations.

OMB Circular A-110 states in part:?"A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment."?See OMB Circular A-110, Property Standards, Section 34 (f) (3).

Reporting Results of Inventories
Property Management is required to notify the Office of Naval Research (ONR) upon completion of OSU's biennial inventory and provide them with (A) a listing that identifies all discrepancies disclosed by the physical inventory, and (B) a signed statement that a physical inventory of all or certain classes of Government property was completed on a given date and that the official property records were found to be in agreement except for discrepancies reported.

ONR is the cognizant agency for property procedures and rates the university on its ability to protect, preserve, account for and control Government-owned property.  An unsatisfactory rating would have an impact on OSU's ability to receive federal grants and contracts.  Every effort should be made to identify all assets on OSU's inventory during the physical inventory cycle.