Inventory Management Requirements · Inventory Management Requirements ... •Physical inventory...

Richard Woods, Georgia’s School Superintendent“Educating Georgia’s Future”

gadoe.org

Inventory Management Requirements

2016 Georgia Federal Programs ConferenceGeorgia International Convention Center & Atlanta Airport

Marriott Gateway Hotel Atlanta, Georgia

June 21 – 23, 2016

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http://www.gadoe.org/

Richard Woods, Georgia’s School Superintendent

“Educating Georgia’s Future”gadoe.org



PresentersGrace McElveen

Title I Education Program SpecialistGeorgia Department of Education

School Improvement – Federal [email protected]

(912) 334-0802

Kathy PruettTitle I Education Program SpecialistGeorgia Department of Education

School Improvement – Federal Programskpruett @doe.k12.ga.us

(706) 540-8959

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mailto:[email protected]





gadoe.org

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SCHOOL IMPROVEMENT & DISTRICT EFFECTIVENESS







Agenda

• Function of an Inventory• Definitions• Procedures for Inventory Management • Off-site Use of Equipment• Physical Inventory• Equipment Use in Targeted Assistance Program• Equipment Use in Private Schools• Disposition Policy• Loss, Damage or Theft of Equipment• Common Equipment/Inventory Findings

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Functions of an Inventory

• Serves as a needs determination to assist LEAS in determining if additional materials and supplies need to be purchased in order to implement the district’s educational programs.

• Surveys the property in storage to determine if it is being (a) held for disposition, (b) in the process of production for disposition, or (c) to be consumed/utilized in the implementation of the district’s educational programs.

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Functions of an Inventory

• Tracks the property undergoing repair. Procedures include a process for repair and a work-in-process tracking system.

• Provides an inventory disposition process for the loaning and issuing of equipment, as well as the disposal process.

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Definitions – Equipment

2 C.F.R Part 200.33 • Nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.

• Grantee may also use its own definition of equipment as long as the definition would at least include all equipment defined above.

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Definition – Supplies

• All tangible personal property other than equipment

• Computing devices

Machines used to acquire, store, analyze, process, public data and other information electronically

Includes accessories for printing, transmitting and receiving or storing electronic information

BRUSTEIN & MANASEVIT, PLLC 8

2 C.F.R Part 200.94

2 C.F.R Part 200.20







Definitions – Pilferable Items

• Pilferable (Walkable) Items: those items that may be easily be lost or stolen.

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Procedures for Maintaining an Inventory of Equipment

2 C.F.R. Part 200.313(d)(e)

• Acquisition of equipment

• Method for entering information into inventory management system

• Maintenance procedures to keep equipment in good condition

• Off-site use of equipment

• Physical inventory

• Equipment disposition

• Supplies disposition

• Loss, damage or theft of equipment

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Procedures for Maintaining an Inventory of Equipment

• Equipment use for Title I, Part A Targeted Assistance

Programs

• Equipment use for private schools

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Requisition of Equipment

• Determine the need and use of equipment.

• Purchases made in accordance the Title I federal regulations.

• Equipment must be reasonable and necessary.

• Follow internal control procedures for approval and receiving of equipment.

• Proper labeling of equipment.

• Issuing equipment to proper location.

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Entry of Information into Inventory Records

• Inventory Records should include: Description Serial Number/Identification Number Funding Source and Percentage of Source

(including FAIN) Title Vendor Acquisition Date and Unit Cost Location Use (Student Instruction, Professional

Development, Parent Involvement, etc.) Condition Disposition (including sale price, if applicable)

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2 C.F.R. Part 200.313(d)(1)








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Go to Sample Inventory Record



Sample Title I Inventory.xlsx






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Sample Title I Inventory

ABC School

Description VendorPurchased

DatePurchased

Price

Dated Included on Inventory

Identification Funding/Title Specific Location

Use of Equipment

ConditionDisposition

DataDate of Disposal

Physical Inventory Initial

and Date

Serial# Decal # Grant % funded FAIN







Use of Equipment

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• Equipment must be used by the non-federal entity (LEA) in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the federal award

2 C.F.R Part 200.313(c)(1) and (2)







Use of Equipment

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• When no longer needed, may be used in other activities with the following priority:

Projects supported by federal awarding agency

Project funded by other federal agencies

• When used it may be shared (according to the above priorities) provided such use will not interfere with work on the original projects/programs

• Exception – Private Schools

2 C.F.R. Part 200.313(c)(1) and (2)

2 C.F.R. Part 76.661







Off-Site Use of Equipment

• Written procedures to ensure effective tracking system for equipment used off-site.

• Possible components of the procedures:

date signed out,

purpose of use,

person responsible, and

condition of equipment upon return.

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Off-Site Use of Equipment

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DISTRICT/SCHOOL NAME

Off-site Equipment Usage

Date Checked Out Purpose of UseEquipment Checkout

Person Responsible

Date ReturnedCondition of

Equipment Upon Return







Physical Inventory

2 C.F.R. Part 200.313(d)(3)

• Physical inventory shall be taken and results reconciled at least once every two years.

• States may require standards above and beyond federal law –Georgia requires annual physical inventory checks.

• Physical inventory must be signed off by the person conducting the check.

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Physical Inventory

• Purpose of physical inventory is to verify

the existence of equipment.

current utilization of equipment – is equipment being used for intended purpose.

the continued need of equipment.

the condition of the equipment.

• If an LEA cannot locate an item purchased with federal funds, it is difficult to demonstrate the item was necessary for the performance or administration of the grant, reasonable, or benefitted the program that paid for the item.

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Equipment Use in Targeted Assistance Programs

• Equipment purchase for TA program must be reasonable and necessary to implement a properly designed program for Title I, Part A participants.

Used with targeted assistance students, based on needs assessment.

• The standards will have been presumed to be met and the use of Title I, Part A equipment in non-Title I, Part A activities is proper if use does not exceed 10-percent of the time the equipment is used in Title I, Part A activities.

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Equipment Use in Participating Private Schools

Section 1120(d)(1) of the ESEA

• Control of the Title I funds, and the ownership of the materials and equipment, purchased with Title I funds for private schools shall with the LEA, and the LEA shall administer the funds, materials, equipment and property.

• LEA responsibility rather than the responsibility of the private school.

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District officials will:• complete the requisitions forms for ordering

materials and/or equipment.

• have the materials and equipment delivered to the LEA.

• sign for the delivery of the materials and/or equipment.

• label the equipment according to funding source to include the fiscal year of purchase and property of the respective school district.

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District officials will:

• deliver the materials and/or equipment to the private school.

• store materials and equipment in a secure location when not in use.

• maintain an inventory of all materials, equipment, and property purchased with Title I funds for use with eligible Title I students at private schools. The inventory shall contain the same requirements for any equipment purchased with Title I, Part A funds.

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• Inventory must be updated as equipment items are purged or new purchases are made.

• Equipment items purchased with federal funds are to be identified and physically marked as such.

• Adequate safeguards must be in place related to the loss, damage, or theft of the equipment. Any loss, damage, or theft should be investigated and fully documented.

• Adequate maintenance procedures should be implemented to keep the equipment in good condition.

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Disposition of Equipment

2 C.F.R. Part 200.313 (e)

• When original or replacement equipment acquired with federal funds is no longer needed for the original project or program, the equipment may be retained, sold or disposed, if it is not needed in any other Title I, Part A like or federally funded project or program.

• Must follow disposition rules: Nonfederal entity must request

disposition instructions from the federal awarding agency if required by the terms of the grant.

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2 C.F.R. Part

200.313(e)

• Equipment items with an acquisition cost/current per unit fair market (explanation is provided in Definitions section) value of less than $5,000 and are more than three years old may be retained, sold or disposed, with no further obligation to the GaDOE.

• The disposition of such items should be so noted on the equipment inventory maintained by the LEA.

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2 C.F.R. Part 200.313(e)

• Otherwise, may be retained, sold or otherwise disposed as follows: Over $5,000 – pay federal share

• If equipment is sold: federal awarding agency may permit non-federal entity (GaDOE) to deduct and retain $500 or 10-percent of the proceeds for selling and handling instructions.

• Forward a check made payable to the GaDOE in the amount of the state’s share. The amount is then returned to the state’s Title I LEA allocations fund.

• Under $5,000 – no accountability (still must formally dispose)

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Loss, Damage or Theft of Equipment

2 C.F.R.

Part 200.313(d)(3)

• Control system for adequate safeguards to prevent loss, damage, or theft

Process for investigation of any loss,

damage or theft.

Indicate the proper documentation needed to notify and report loss, damage or theft.

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• Types of Controls

Locks or security camera (for particularly valuable or

vulnerable items).

Access controls to warehouses to limit entry by unauthorized

personnel.

Use of logs or sign-in sheets for certain items of property; for

example iPads, laptops, cameras, projectors.

Procedures for promptly entering items received into the

inventory management system.

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Title I, Part A Monitoring Considerations

• Is equipment a Title I allowable purchase?

• Is equipment purchased reasonable and necessary?

• What accountability system is in place for purchasing equipment and keeping an inventory?

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Title I, Part A Monitoring Considerations

• Does the equipment policy/procedures address the following:• Definition of equipment

• Purchasing procedures

• Use of equipment

• Maintenance of equipment and inventory

• Physical inventory

• Safeguard of inventory

• Disposal of equipment

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Title I, Part A Monitoring of Equipment

• LEAs may be scheduled to have an on-site monitoring of inventory between September and December (mainly based on equipment expenditures) Scheduling does not necessarily follow Cross-Functional Monitoring

schedule – Notification provided in August

Monitoring conducted by your Title I Program Area Specialist

LEAs will provide

• Inventory Management Procedures

• Actual inventories for Selected Schools

• Physical Inventories for Selected School

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• Common Findings Failure to maintain an equipment inventory

No physical inventory conducted

• If no signature and date – Inventory essentially not conducted!

Insufficient, outdated or no inventory management procedures

• Disposition Procedures

• Theft/Loss Reporting Procedures

• Transfer/Repurposing of Equipment Procedures

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• Common Findings Lack of sufficient documentation to support purchases

• Alignment of purchases with school’s needs assessment

• Quantities purchased deemed reasonable/necessary

• Mobile computer carts in storage/no record of check-out

• Unopened cases of equipment (some with ¼” of dust!) Alternate use of equipment

• “Repurposing” due to various factors is possible

• Equipment transfer must be documented

Instances of fraud, waste and abuse

• Allowable purchases used in unallowable ways

• Missing items unaccounted for

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Title I, Part A Program Specialists Contact

InformationArea Name Office

Telephone

Email

1 Robyn Planchard (404) 985-3808 [email protected]

2 Sherri Minshew (770) 324-1965 [email protected]

3 Anthony Threat (706) 615-0367 [email protected]

4 Evelyn Maddox (404) 975-3145 [email protected]

5 Judy Alger (229) 321-9305 [email protected]

6 Grace McElveen (912) 334-0802 [email protected]

7 JaBra Harden (229) 563-6269 [email protected]

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Title I, Part A Program Specialists Contact

InformationArea Name Office

Telephone

Email

8 Marijo Pitts-Sheffield (912) 269-1216 [email protected]

9 Kathy Pruett (706) 540-8959 [email protected]

10 Elaine Dawsey (478) 971-0114 [email protected]

11 Olufunke Osunkoya (678) 704-3557 [email protected]

12 Bobby Trawick (229) 246-1976 [email protected]

13 Ken Banter (478) 960-2255 [email protected]

14 Tammy Wilkes (478) 237-2873 [email protected]

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Presenters

Grace McElveenTitle I Education Program SpecialistGeorgia Department of Education

School Improvement – Federal [email protected]

(912) 334-0802

Kathy PruettTitle I Education Program SpecialistGeorgia Department of Education

School Improvement – Federal Programskpruett @doe.k12.ga.us

(706) 540-8959

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gadoe.org

Inventory Management Requirements

2016 Georgia Federal Programs ConferenceGeorgia International Convention Center & Atlanta Airport

Marriott Gateway Hotel Atlanta, Georgia

June 21 – 23, 2016

5/31/2016 42


Inventory Management Requirements · Inventory Management Requirements ... •Physical inventory...

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