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NOTE 7. Inventory and Related Property, Net

USAID’s Inventory and Related Property is comprised of Operating Materials and Supplies. Operating Materials and Supplies as of September 30, 2007 and 2006 are as follows:

Inventory and Related Property
(Dollars in Thousands)
  2007 2006
Items Held for Use    
Office Supplies $12,783 $14,895
Items Held in Reserve for Future Use    
Disaster Assistance Materials and Supplies 7,599 16,074
Birth Control Supplies 15,371 22,376
Total $35,753 $53,345

Operating Materials and Supplies are considered tangible properties that are consumed in the normal course of business and not held for sale. The valuation is based on historical acquisition costs that do not exceed capitalization criteria of $25 thousand. There are no items considered as obsolete or unserviceable, and currently there are no restrictions on their use. Inventory costing less than $25 thousand is expensed as incurred.


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