Specifications include, but are not limited to: 1. Verify parts and equipment in storage are properly included in inventory. NDDOT Financial Management staff have witnessed storage rooms at a District Office with a large amount of parts and equipment, not included in inventory. a. NDDOT has historically communicated to District Offices that several assets could be omitted from inventory. Determine if this is appropriate based on NDDOT Policy 10.1 Disposable Inventory. Examples include; oil and mixed sand. b. Verify that parts and equipment that have been expensed and removed from inventory and later returned unused or lightly used, is returned to inventory. c. Verify inventory is being properly reported and that parts and equipment are not purchased as vehicle expenses and replaced outside of the proper inventory process flow. d. Verify inventory items are properly disposed when no longer used or obsolete. e. Assess if the proper amount of inventory is on hand to meet historical demand. f. Ensure proper physical security of inventory. g. Ensure timeliness of inventory reporting.h. Verify the proper process is being followed when inventory is sold, to include the proper channels for billing and payment being routed through the Financial Management Division. 2. NDDOT Policy 21.04 District Purchase Authority. a. Verify District Office purchases are made within delegated authority outlined in NDDOT policy 21.04 District Purchase Authority and Responsibilities, and within proper procurement certification level. i. Less than $10,000 Level 1ii. $10,000 to Less than $50,000 Level 2iii. $50,000 to Less than $100,000 Level 3iv. $100,000 and Greater Level 4b. Verify proper procurement rules are being followed when making purchases (example: competitive procurement requirements). c. Review P-Card statements to ensure purchases are appropriate and within delegated authority. Also verify parts and equipment purchases are properly reported as inventory.
