blog posts UAFR Weekly Tips Jun 23, 2021 9:00 amAccounting and BudgetingDoes your unit have inventory for resale on hand which is sold as a part of a self-supporting operation? If so, do you have plans in place to conduct an annual physical count of those items so that you can properly report the value of any inventory for resale on hand as of June 30 on your Year-End Fact Sheet? See below for a few tips to keep in mind: Per Section 22 of the Business and Financial Policies and Procedures, all units with inventory for resale are required to conduct an annual physical count of their inventory for resale on hand, and are required to report the adjusted value as of June 30 to UAFR as a part of the annual Year-End Fact Sheet reporting process. While the count itself does not necessarily need to be performed on June 30, the value of the inventory for resale reported on the Year-End Fact Sheet must reflect the reconciled value as of the close of business on June 30. For example, if a physical count is not able to be performed at the close of business on June 30, then any purchases of additional inventory for resale and/or any sales activity from the date of the physical inventory count through the close of business on June 30 must be tracked and reconciled. This will enable you to arrive at a reconciled balance that properly represents the ending balance of inventory for resale on hand as of June 30. This reconciliation will also be essential if your physical count is ever audited. For further details, refer to the following policy and/or reference tools: Conduct a Physical Inventory to Adjust Your Merchandise Inventory RecordInventory for Resale Reference ToolPublication Inventory Reference ToolContactFor further guidance, feel free to reach out to the applicable subject matter experts within the Fact Sheets section of UAFR’s Who to Ask list.