Title I Equipment Inventory Requirements Los Angeles Unified School District Federal & State Education Programs February 2017

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), § 80.32 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 There are federal and state mandates to purchasing equipment with Federal funds.

LAUSD Policy Adhere to the following LAUSD policies: LAUSD Policy Bulletin 3508.7: Inventory for Equipment Purchased Through Categorical Programs LAUSD Bulletin 953: Control of Site Equipment LAUSD Policy Bulletin 1158.1: Accounting for Supplies and Equipment Purchases At this point of the presentation, would be the opportunity to explain/clarify/distinguish the different types of the inventory that are conducted at school sites. There are many types of equipment that can be on your school site, we are focusing on the equipment purchased with Title I funds.

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 Unauthorized/authorized users

Recent Audit Findings Schools did not include all required information on inventory: Cost Purchase Date Delivery Date Information on lost, stolen or salvaged items (Police report or salvage date) There is a 25% chance your school will be audited by an outside firm, there is a 100% chance your school will be reviewed by our office. Simpson & Simpson

Purchasing Equipment

Equipment Expenditure Line Items General Supplies-Technology (430001): Equipment costing less than $500, (including tax, shipping and other ancillary charges) Non-Capitalized Equipment (440001): Equipment costing between $500 and $4,999 (including tax, shipping and other ancillary charges) Capitalized Equipment (640001): Single piece of equipment costing $5,000 or more* (including tax, shipping and other ancillary charges) *Capitalized equipment is still a restricted item. All documentation for Capitalized Equipment must be submitted by the end of March. Capitalized equipment in by the end of March, has to be reviewed by CDE

Purchasing Equipment Schools must submit to the LD Title I Coordinator: SPSA Modification Page Vendor Quote Budget Adjustment Request If budgeting for non-cap, add 10% more

Purchasing Equipment All equipment purchases through General Supplies-Technology (430001) or Non-Capitalized Equipment (440001) must be received by May 5, 2017. All schools attempting to purchase equipment must have submitted a completed and correct Categorical Equipment Inventory (CEI) for the prior year. This information will be reviewed by FSEP prior to approving any purchases. All related documentation must be maintained for 5 years. (e.g., requisitions, POs, invoices) LD Specific dates for BARs Emphasize the 2nd arrow

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 LD Title I Coordinators Labels should be firmly affixed to each item when received and include the following: Funding Source School Name Purchase/Delivery Date Serial Number

Equipment Inventory

Maintaining a Historical Database All schools must maintain an inventory using the Excel spreadsheet provided by FSEP 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) Disposition (Salvaged, Police Report) Location (if equipment moves around, indicate it’s base location)

Sample Categorical Equipment Inventory Items in green must be updated, Section II only if equipment was not purchased and listed in Section III Do not take anything off* Note the disposition for the items in yellow and blue Discuss the responsibility for maintaining this form

Physical Check of Equipment

Physical Check of Equipment 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 Check Performed by: Gus Burton Date of last completed Physical Check:* 5/30/2016 *Update date when next Physical Check is completed Contact Person: Your next Physical Check is on†: 5/31/2018 †Unless an earlier date is determined by FSEP or your ESC Ongoing You can assign a tech or an aide to help, but ultimately the Title I Coordinator and the Principal will be held responsible.

Submitting your CEI FSEP@lausd.net 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 Subject line: School Name_CEI_2016-2017 Please put the name of your school

Disposal of Equipment

Disposal of Equipment Must complete Disposal of Equipment Form if Disposition Status is: Salvaged Stolen Unusable Must have the principal’s signature Ongoing

Removing Equipment from Inventory Equipment that is 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 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. In the event of a theft, the school must also indicate the Police Report Number on the CEI. A Police Report must be filed within 30 days once an item has been considered missing. Equipment in a Title I school that subsequently closes or is no longer funded must be removed by FSEP staff and will be relocated for appropriate use.

NEXT STEPS STARTING NOW: Meet with SSC to determine if your school will order equipment , submit necessary documents to your LD Obtain red Equipment Labels if needed Complete the Categorical Equipment Inventory (Attachment B) by adding all new purchases to last year’s CEI 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 CEI in excel format to FSEP (FSEP@lausd.net) after all equipment has been received for the current school year. (May-June) Maintain a copy at the school site. CEI MUST be completed…even if equipment was not purchased during the current fiscal year

Questions? Hector Arancibia Hector Arteaga hja8803@lausd.net 213.241.7041 Hector Arteaga hxa7130@lausd.net 213.241.6990