Title I Equipment Inventory Requirements

Objectives To develop a deeper understanding of:

Legal Mandates/LAUSD Policy

Purpose for Establishing an Inventory Control System

Purchasing Equipment

Labeling Equipment

Maintaining an Equipment Inventory

Conducting a Physical Check of Equipment

Disposing of Equipment

Legal Mandates Compensatory Education Instrument Tool

(CE Item 20)

Education Department General Administrative Regulations (EDGAR), § 200.313

Office of Budget & Management (OMB) Circular A-87, Appendix B, Item 15

CA Education Code, §35168

CA Code of Regulations, Title 5, §3946

CA School Accounting Manual (CSAM) Procedures 410 & 770

Recent Audit Findings School did not include all required information on inventory:

Cost

Purchase Date

Delivery Date

Non-categorical equipment was included on the Categorical Inventory

LAUSD Policy Adhere to the following LAUSD policies:

BUL-3508.7 Inventory Requirements for Equipment Purchased With Categorical Program Funds

LAUSD Bulletin 953: Control of Site Equipment

LAUSD Policy Bulletin 1158.2: Accounting for Supplies and Equipment Purchases

Purpose for establishing an inventory control system

Prevents loss, damage, and theft of property by tracking and monitoring equipment

Protects against unauthorized use by assigning equipment for appropriate usage

Achieves desired results through effective stewardship of public resources

Purchasing Equipment

Defining Equipment FEDERAL: An article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lessor the capitalization level established by the governmental unit for financial statement purposes, or $5,000 Equipment costing less than $500 is considered “supplies” (General Supplies—Technology)

STATE: CA Ed Code requires that all items of equipment whose current market value exceeds $500 per item be inventoried. NOTE: Beginning in the 2015-16 school year, the acquisition cost of any new equipment will include tax, shipping,

and other ancillary costs.

Purchasing/Leasing Equipment Schools must submit to the Local District Title I Coordinator:

SPSA Update for Equipment and General Supplies Technology

Vendor Quote

Manual Form Budget Adjustment Request

Purchasing Equipment The deadline for purchasing equipment is April 15

(or an earlier date if established by Procurement Services Division)

All equipment must be received prior to/by June 30 (or last business day of the fiscal year).

All related requisitions, POs, and invoices must be maintained for 5 years

Labeling Equipment

Red Equipment Labels All categorically-funded equipment costing $500 or more must be labeled

Recommendation: Label “small & attractive” items costing less than $500

Labels can be obtained from FSEP or ESC Title I Coordinators

Insert red label

Red Equipment Labels

Labels should be firmly affixed to each item when received and include the following:

Funding Source

School Name

Purchase/Delivery Date

Serial Number

X

January 8, 2015

Equipment Inventory

Maintaining a Historical Database All schools must maintain an inventory using the Excel spreadsheet provided by FSEP

Maintaining a Historical Database As new equipment is purchased with categorical funding, it must be

immediately added to the inventory The following information must be included for all equipment:

Description (Type/Model) Serial Number Purchase Date Delivery Date Funding Source Cost Location Current Condition (New, Good, Fair, Poor)

Physical Inventory

Physical Inventory A physical check must be conducted at least once every two years

The results of the inventory check must be reconciled with the inventory records

The school site must identify staff to conduct the physical check

Physical Inventory Email the spreadsheet

(Attachment B) in excel format to:

Federal and State Education Programs (FSEP) after all equipment has been received for the current school year

FSEP@lausd.net

Disposal of Equipment

Disposal of Equipment

When to Complete Disposal of Equipment Form (Attachment C)

Disposition Status on the Categorical Equipment Inventory is: Salvaged Stolen /Lost Unusable

Disposal of Non-Capitalized and Capitalized Equipment

The following information must be included: Description (Type/Model) Serial Number Purchase Date Original Cost Present Value Delivery Date Funding Reason for Removal Value Class (Less or more than $5,000) Requires principal signature Retain the original at school-site and submit a copy to FSEP

Removing Equipment from Inventory Equipment that has been disposed of may be removed from the school’s

Categorical Equipment Inventory after one year of completing Disposal of Equipment (Attachment C of BUL-3508.7)

In the event Non-Capitalized and Capitalized equipment is lost or stolen, the school must indicate this on the inventory and also complete Disposal of Equipment (Attachment C of BUL-3508.7)

Any loss, damage, or theft of equipment must be investigated.

Monitoring Equipment Inventories Federal Program Monitoring (FPM) (a state process) examines categorical Equipment Inventories for compliance when state auditors visit selected school sites

Federal Program Monitoring (FPM) (a state process) examines categorical Equipment Inventories for compliance when state auditors visit selected school sites

Simpson & Simpson, a CPA firm, audits school Equipment Inventories for accuracy and compliance

The federal government will randomly visit LAUSD schools and carefully examine Equipment Inventories for accuracy and compliance

NEXT STEPS - STARTING NOW Obtain red Equipment Labels if needed

Complete Categorical Equipment Inventory (Attachment B) by adding all new purchases

Determine whether a physical check is needed and complete if necessary

Complete Disposal form if applicable. See Bul-3508.7 for guidance in disposal of equipment

Email the spreadsheet (Attachment B) in excel format to FSEP (FSEP@lausd.net) after all equipment has been received for the current school year.

Maintain a copy at the school site.

References Education Department General Administrative Regulations (EDGAR), § 200.313

Office of Budget & Management (OMB) Circular A-87, Appendix B, Item 15

CA Education Code, §35168

CA Code of Regulations, Title 5, §3946

CA School Accounting Manual (CSAM) Procedures 410 & 770

LAUSD Policy Bulletin 3508.7: Inventory for Equipment Purchased Through Categorical Programs

LAUSD Bulletin 953: Control of Site Equipment

LAUSD Policy Bulletin 1158.2: Accounting for Supplies and Equipment Purchases