(a) A physical inventory shall be maintained of all items of nonexpendable equipment and supplies. As a basis for determining which items are to be inventoried, all items which cost $25 or more each shall be considered nonexpendable.

1. (1) Furniture; fixtures; refrigerators; tools; fixed and movable equipment; etc. The original cost of items falling into this category shall be charged directly to the applicable cost or expense accounts (1410.9, 1460.9, 1460.10, 4490.1, 4760.2). As soon as possible after purchase or acquisition, the following information shall be recorded on an inventory card: description, date purchased, cost, voucher number, location and serial numbers. Each inventoriable item should be prominently identified as authority property as soon as possible after acquisition either by stenciling, branding or by the use of metal numbered tags.
2. (2) Commodities; supplies; materials. Fuel, paint supplies, and such other commodities, supplies, and materials (including small tools such as are issued to maintenance men) as the division may hereafter prescribe or the local agency may choose, shall be charged, in the first instance, to the inventory accounts provided and charged to the applicable cost or expense accounts as consumed or issued. All other commodities, supplies, and materials shall be charged directly to the applicable cost or expense accounts. In addition to the general requirement of a physical inventory for nonexpendable equipment and supplies, the local agency shall maintain a perpetual inventory on inventory cards (Exhibit 36 of Appendix S-8), whether or not the commodities, supplies and materials are charged to an inventory account in the first instance. Entries shall be made on these cards for all stock received and issued. Such postings shall be made at least once a week. No items shall be issued without a written requisition. A semiannual physical inventory taken on September 30 and March 31 of each year shall be used to reconcile the balances on the inventory cards and differences between the actual physical count and balances on the cards accounted for. Perpetual inventories not controlled by a general ledger inventory account need only be kept on a physical quantity basis. Although the same inventory card is used for both (1) and (2), the cards covering the furniture and equipment items should be filed separately from the cards covering the stockroom items.

(b) Items.