• Forms
• NCAS
• CAFR Year-End
• CMCS/Central Compliance
• E-Commerce/ SECP
• Central Payroll
• Statewide Foriegn Nationals Compliance Program
• Policies
• Account Classification
• Accounts Receivable
• Capital Assets
• Cash Management
• Central Payroll (Universities)
• Electronic Commerce
• Federal and State Compliance
• Foreign Nationals
• Human Resources Accounting
• Internal Controls
• Payment
• Procurement Card
• Records Retention and Reports Retention
• Revenues and Expenditures
• State Financial Reporting
• Tax Compliance
• Uniform North Carolina Accounting System

Inventories Policy

Authority:
GASB Codification, Section 1600.127a

Effective Date:
7/1/95; Revised 3/20/07

References:
Please refer to the Chart of Accounts: Inventories 116AAA

Policy:
The inventories of the State and component units are valued at cost using either the first-in, first-out, last invoice cost, or average cost method. These inventories consist of general supplies and materials. Institutions of the UNC system and community colleges also use these valuations along with the retail inventory method for some bookstore operations. The State Highway Fund (special revenue fund) accounts for its maintenance and construction inventories using the average cost method.

Except for maintenance and construction inventories of the State Highway Fund, inventories in the State's governmental funds are recorded as expenditures when purchased. In the fund financial statements, inventories are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All other inventories of the State and its component units are recognized as expenses or expenditures when consumed.

At year-end, significant amounts of inventories for governmental funds should be reported in the balance sheet as an asset, with a reserve for inventory in fund balance. All inventories that exceed $1,000.00 in value (except postage, which, because of its liquidity, must be recorded when it exceeds $100.00 in value) must be recorded or adjusted as of 6/30/XX. Where inventories are distributed among several locations, the cumulative total value should be considered in determining materiality.