Property Custodians are the individuals responsible for the physical custody, care, and safekeeping over

property in their possession or under their supervision. Custodians often have other job responsibilities
aside from the management of property. Physical inventories are an important aspect of a property
custodian’s responsibilities.

The primary purpose of a physical inventory is to account for all accountable items on the custodial area’s
inventory list. Regularly scheduled physical inventories must be conducted and the on-hand quantities
and conditions must be reconciled to the accountable property records maintained in the accountable
property system of record (APSR). The importance of this task cannot be taken lightly. Routine physical
inventories establish and improve accuracy and accountability of property in the custody of the
Department. Judicious physical inventories directly impact property availability, procurement actions,
financial visibility, and overall supply effectiveness.

The custodial officer is responsible for assisting the Accountable Property Officer (APO) in establishing
and maintaining the most accurate accountable property records possible. For example, the physical
inventory only shows whether items were found. Items that were not found may have been lost, stolen,
destroyed, legitimately disposed of (but unrecorded), or simply missed during the inventory. Custodial
officers may have the additional duty of uncovering what happened to those items that were not found
and entering the data into the APSR.

The following results should be achieved from the physical inventory:

 Verifying that property on record is on hand in the physical location or proper custodial area
assigned, and has an identification marking and condition recorded

 Identifying unrecorded property so it can be reconciled to the property system and financial system

 Locating or identifying missing items

 Reconciling custodial, accountable, and financial records are reconciled

 Identifying items that are in need of repair or are excess and may be disposed