Effective Date: March 07, 2017
Expiration Date: March 07, 2027
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5.1.1 Physical inventories are conducted to update and assess the accuracy of inventory records. Physical inventories are designed to identify inventory overages, losses, and damage; process inconsistencies; and physically verify that the quantities of assets on hand match the SMS record. The Supply Officers shall ensure physical inventories of Center materials and supplies are conducted to ensure the physical on-hand quantity and the inventory record quantity are in agreement for all inventory.
22.214.171.124 Physical inventories provide a method of reconciling and adjusting inventory records so that accurate information is reflected in SMS.
5.1.2 The inventory accuracy rate at the completion of physical inventories measures the adequacy and effectiveness of inventory control processes and determines the accuracy of supply records in SMS.
126.96.36.199 The calculation of the inventory accuracy rate is the percentage of items having accurate records. The inventory accuracy rate computation equals the number of correct records divided by the number of records inventoried multiplied by 100. Centers are required to achieve an inventory accuracy rate of 95 percent for program stock, store, and standby stock inventories.
5.1.3 The Supply Officer shall ensure an inventory analysis is performed when Centers do not meet the inventory accuracy rate.
5.1.4 Individuals responsible for conducting physical inventories cannot be the same individuals performing daily storage and issue functions for the items stored in Logistics warehouses.
5.1.5 The Supply Officer shall develop a written inventory schedule for accomplishing physical inventories of store, program, and standby stock.
a. Physical inventories will be conducted and completed by September 30 in the same fiscal year.
b. The inventory schedule should contain, at a minimum, the data elements listed below:
(1) Identification of Materiel and supplies under inventory (store, program, or standby stock).
(2) Scheduled inventory start dates.
(3) Estimated completion date.
(4) Number of items inventoried.
5.2.1 Supply Officers shall ensure a cyclical complete wall-to-wall inventory is conducted every 5 years. The Supply Officer is required to ensure 5 percent of the total line items on hand are inventoried quarterly each fiscal year using the complete inventory method until all assets have been inventoried at the end of 5 years.
5.3.1 When a quarterly inventory does not meet the inventory accuracy rate standard of 95 percent, the Supply Officer or their designee will perform an analysis to determine the root causes for the inventory errors and recommend corrective action. The Supply Officer will forward the corrective action to the SEMO for approval.
5.3.2 The Supply Officer is required to prepare a quarterly summary report of the physical inventory results for approval by the SEMO and Senior Logistics Manager or equivalent.
a. The summary report will be submitted to the Center Director or equivalent and the Center Operations Director or equivalent 10 work days from the close of the inventory.
b. A copy of the summary report will be forwarded to NASA HQ, Logistics Management Division Supply Program Manager 15 calendar days from the close of the inventory.
c. The summary report will include the following:
(1) Inventory, start and completion date.
(2) Number of line items inventoried for the quarter, type of stock, and value of items inventoried.
(3) Number and value of line items with pending property survey reports.
(4) Number of line items, value, and reason for inventory adjustments.
(5) Any training, procedural, and process changes or corrective actions initiated or implemented to improve asset accountability following analysis of the inventory results.
(6) Quarterly inventory accuracy rate achieved and actions taken to improve inventory accuracy rate if standard not met.
5.3.3 Loss, damage, or theft of controlled assets requires the completion of a survey report (NF 598) per NPR 4200.1.
5.3.4 The Supply Officer shall process a Supply Physical Inventory Details Report in SMS at the completion of an inventory.
5.3.5 The SEMO shall sign, date, and certify the report and direct initiation of reports of survey as required per NPR 4200.1.
5.4.1 NASA inventory records in SMS will accurately reflect the physical balance of Materiel assets on hand and need to be reconcilable with financial records. When discrepancies exist between inventory records and physical on-hand balances, prompt action will be taken to correct, determine the cause, and adjust the balances to correct the discrepancy.
5.4.2 Personnel conducting the inventory shall perform a 1-year transaction history to determine the reason for inventory discrepancies prior to adjusting the inventory record except for items that require special controls. A 1-year transaction history is not required when the extended value of discrepancy is less than $50. The automatic adjustment does not apply to special or controlled inventory items that will be fully researched regardless of value of the discrepancy. When Materiels inventory records are adjusted, corresponding adjustments need to be made in the appropriate General Ledger Accounts and identified as losses or credited to gains to the Center Financial Officer.
5.4.3 The following inventory adjustment transactions cause gains or losses to the Inventory General Ledger Account 1200 and shall be reported to the Center Financial Officer by the SEMO or their designee.
a. Discrepancies between the recorded system balance and the physical count quantity.
b. Inventory adjustments due to damage, destruction, obsolescence, deterioration, loss, or theft.
c. Adjustment of record to correct operational errors that cannot be referenced to the original transaction document.
d. Transfer of excess Materiels to the Property Disposal Officer (PDO); delete value from Account 1200.
e. Return to vendors or suppliers when no other type of transaction is appropriate.
5.4.4 Adjustments transactions from paragraph 5.4.3 a. through e. shall be processed for approval as follows:
a. When the total dollar value of line items is $5,000 or more, the adjustment report shall be certified by the SEMO and approved by the Inventory Adjustment Officer (IAO). When the total dollar value of any one item is less than $5,000, the adjustment may be certified by the Supply Officer and approved by the SEMO.
b. Approving officials shall ensure inventory adjustments are not the result of fraud, waste, abuse, theft, or misappropriation of personal property. If any such condition is suspected, the official shall require a property survey report per NPR 4200.1. An inventory adjustment reasons code for all adjustments will be recorded in SMS.
Table 5-1 Inventory Adjustment Reason Codes
|Physical Inventory Discrepancies||01|
|Damage or Destruction||02|
|Obsolescence or Deterioration||03|
|Returns to Vendor||10|
|Excess Transfers to PDO||11|
5.4.5 Copies of all adjustment reports and inventory adjustment vouchers that delete items of inventory from Account 1200 for redistribution or disposal shall be sent to the Deputy Chief Financial Officer by the SEMO.
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