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

2. 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

3. Legal Mandates Compensatory Education Instrument Tool (CE Item 20)
Education Department General Administrative Regulations (EDGAR), §
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.

4. LAUSD Policy Adhere to the following LAUSD policies:
LAUSD Policy Bulletin : Inventory for Equipment Purchased Through Categorical Programs
LAUSD Bulletin 953: Control of Site Equipment
LAUSD Policy Bulletin : 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.

5. 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

6. 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

7. Purchasing Equipment

8. 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

9. 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

10. 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

11. Labeling Equipment

12. 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

13. Equipment Inventory

14. 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)

15. 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

16. Physical Check of Equipment

17. 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.

18. Submitting your CEI FSEP@lausd.net
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
Subject line:
School Name_CEI_
Please put the name of your school

19. Disposal of Equipment

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

21. 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 )
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 ).
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.

22. 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 for guidance in disposal of equipment
the CEI in excel format to FSEP 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

23. Questions? Hector Arancibia Hector Arteaga hja8803@lausd.net
Hector Arteaga