Definitions
Inventory is defined as an itemized list for tracking and controlling property.
Capitalization is defined as an accounting treatment whereby an item is recorded as a long-term asset on the balance sheet rather than as a consumable expense of the current period.
Property Control Manager is defined as the individual appointed or assigned by the Board to have overall responsibility for tracking capital assets and for the accuracy of the asset records.
High-Risk Equipment are those items which are easily portable, desirable for personal use, or easily marketable. Technology devices, excluding accessories, are considered theft-sensitive and high risk.
Inventory Records
The following equipment will be inventoried:
All equipment items costing in excess of $3,000
All non-equipment capital assets costing in excess of $15,000
All technology devices, excluding accessories
All high-risk equipment
The following information must be maintained by the Assistant Superintendent for Business or designee on the equipment/fixed asset inventory:
Name and description of the property by make and model
Serial number or other identification number
District assigned identification number
Date of acquisition
Cost of the asset (amount paid or estimate, if unknown)
Location of use indicating the department having custody
Date and method of disposal and sale price
For items acquired with federal funds:
- funding source
- use and percentage of property
- percentage of federal participation in the cost
To the extent practicable, an inventory software program will be utilized to facilitate the District’s inventory tracking system.
Inventory Tags
All inventory will be tagged with the District assigned identification number and the name of the District
Capitalization of Assets
Equipment items that cost more than $10,000 will be capitalized and depreciated for GASB 34 reporting purposes
Equipment items costing less than $10,000 will be expensed for GASB 34 reporting purposes
All non-equipment capital assets costing in excess of $15,000 will be capitalized and depreciated for GASB 34 reporting purposes
All non-equipment capital assets costing less than $15,000 will be expensed for GASB 34 reporting purposes
Donated items will be capitalized at fair market value on the date of the donation
Some assets individually may fall below the capitalization threshold but may be purchased in large quantities by the District (e.g., computers). The District may choose to capitalize these assets as a group
For financial reporting purposes, fixed assets with a service life of more than two years following the date of acquisition will be capitalized. Useful lives will be determined in the year of purchase based on general guidelines obtained from professional organizations and the asset’s present condition. The District will use the straight-line method of depreciation and residual value will be considered. Depreciation expense will be calculated beginning in the year the asset is placed in service.
Federal Grants
The District must be able to identify the location of all capitalized assets purchased with Federal grants. An inventory of Federal assets will be maintained by the Assistant Superintendent of Business or designee on an ongoing basis. Federal Uniform Grant Guidance requires a physical inventory of Federal assets to occur at least once every two years (section 200.313 (d)(2)). A copy of the complete inventory will be maintained in the Business Office.
Inventories must contain tag number, if applicable, description of the property, serial number or other I.D. number, source of funding, acquisition date, cost, vendor, and location. (Federal Uniform Grant Guidance section 200.313 (d)(1)).
Fixed assets are tagged with a District asset tag number by the department. The department is responsible for maintaining these inventories, including separate inventories for items purchased with federal funds.
The Assistant Superintendent of Business or designee is required to update inventories for equipment valued over the thresholds set by Board of Education Policy 5622: Capital Assets Accounting that are contained within their building. (Federal Uniform Grant Guidance requires a capitalization level of not more than $5,000 per unit acquisition cost, per section 200.333). An inventory of high-risk assets should also be performed every two years regardless of dollar amount.
Principals or their designee are also required to update inventories for non-consumable object purchases contained within their building.
The District inventories need to be stored in the vault for safe keeping.
Adequate maintenance should be performed to keep property in good condition.
Prior year inventory listings should be reviewed to assist in identifying assets missing, junked or sold during the current fiscal year.
Disposal of Assets
All school property and equipment deemed surplus will be disposed of at the discretion of the Board.
When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the District must request disposition instructions from the Federal awarding agency, if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with the Federal awarding agency disposition instructions.
Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency.
If the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair-market value in excess of $5,000 may be retained by the District or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency’s percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency may permit the District to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses.
The District may transfer title to the property to the Federal Government or an eligible third party.
Lost or Stolen Items
Lost or stolen property should be reported to the Principal or Program Director as soon as the individual is aware of the missing item. The Principal or Program Director should then report the lost or stolen item to the Superintendent or designee.
Lost or stolen items should include an explanation of what happened to the item as available.
If an item is valued at $250 or more, a police report should be filed and included with the insurance claim.
This policy will supersede any inconsistent provisions set forth in other Board policies adopted prior to the date hereof.
Adoption date: December 1, 1995
Amended date: April 29, 2008
Amended date: July 9, 2018
Amended date: January 14, 2019
Amended date: October 24, 2022
Amended date: February 12, 2024
Amended date: May 11, 2026
Amended date: September 14, 2026