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Office of Internal Auditing

Internal Controls: Property, Equipment, and Inventory

Below is a listing of internal control (IC) best practices and the related University policy, if applicable:

IC 1: Procedures are established to track additions and removals of all equipment and capital assets.

The department should develop and document standard procedures/guidelines to track assets and inventory consistent with University policy and procedures. The development of standard procedures will assist in the tracking and annual reconciliation of capital equipment.

IC 2: University equipment and assets are tagged in accordance with property control standards.

See University Policy 6.1.38. The State Property Control Act (30ILCS 605) requires that state-owned equipment of $2,500 or more and "high risk" equipment be tagged with a unique six-digit identification number. High risk items include but are not limited to all computers, data holding devices, firearms, and antiques.

IC 3: Inventory (including goods for resale) are:

  1. Adequately secured: Inventory and capital equipment must be adequately secured to prevent theft or loss.
  2. Proper segregation of duties: Separate individuals order, receive, and record inventory.
  3. Reconciled annually: The department should develop and document standard procedures/guidelines to track assets and inventory consistent with University policy and procedures. The development of standard procedures will assist in the tracking and annual reconciliation of capital equipment.