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Nonprofit Internal Control Quick Tip: Property/Equipment Inventory

CPAs & Advisors

Michael Evrard
Michael Evrard CPA Principal CPAs & Advisors

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If your nonprofit organization receives any federal funds, you are probably familiar with the requirements that come with them concerning the acquisition, maintenance, tracking, and disposition of any property and equipment purchased with those funds. It is a good idea for organizations to follow similar requirements, regardless of the type of funding used to purchase them.

A best practice is to have a property/equipment tracking document that is updated for these purchases, with information such as serial number, cost, location, condition, funding source used for the purchase, and tag number. A simple inventory can be done annually to ensure these items remain in the custody of the nonprofit.

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