Procedure

Capital Equipment

1. Any single item with a value of $5000 or greater is considered capital equipment.
2. Once the item has been purchased or donated assign the item an Inventory Number. Capital equipment has a four digit inventory number. This number is on a preprinted inventory label attached directly to the item.
   1. If the equipment is located in one of the direct service regions, the Regional Manager is responsible for it's security. The manager must account for it in the inventory check at the end of each school year (May).� Adequate maintenance procedures shall be implemented to keep the equipment in good condition.
   2. The Administrative Manager is responsible for the security of the equipment in the Central Office and must account for it in the inventory check at the end of each school year (June). Adequate maintenance procedures shall be implemented to keep the equipment in good condition.
   3. Regarding capital equipment which can be checked out, the procedures are as� follows:
      1. If equipment is stored at one of the direct service regions, the appropriate Regional Assistant is responsible for monitoring that equipment.� That includes checking the equipment out and in and maintaining a log in which this activity is recorded.
      2. For equipment stored in the Central Office, the Executive Administrative Assistant� is responsible for monitoring that equipment.
3. The Administrative Manager is responsible for maintaining appropriate insurance coverage on all Head Start capital equipment.� If loss, damage, or theft occurs to this equipment, such activity will be reported to the Administrative Manager who will document it, investigate it, and communicate the appropriate information to the insurance agent.
4. The inventory number is to be conspicuously written and retained in the Finance Dept. inventory file.
   1. �No less than every two years, the Finance Dept. will coordinate a physical inventory of capital equipment and the results will be reconciled with the property records.� The inventory will verify the existence of, the current utilization and condition of, and the continued need for the equipment.
5. All inventory records are summarized in the Fixed Asset Spreadsheet in Excel on the computer. Enter each item and record the information requested.� Federal regulations state that the following information shall be included:
   1. A description of the equipment, including manufacturer's model number, if any.
   2. An identification number, such as the manufacturer's serial number, VIN, or assigned inventory number.
   3. Identification of the grant under which the equipment was acquired.
   4. Information indicating the Federal share of the equipment.
   5. Acquisition date and unit acquisition cost.
   6. Location, use, and condition of the equipment and the date the information was reported.
   7. All pertinent information on the ultimate transfer, replacement, or disposition of the equipment.
   8. At the end of the year, compile a list of "Additions" for the Auditor to verify during the annual audit.
6. Where capital equipment is to be sold and the Federal Government is to have a right to part or all of the proceeds (if FMV is greater or equal to $5000), selling procedures shall be established which will provide for competition to the extent practicable and result in the highest possible return.
   1. Before a capital equipment item can be disposed of, written approval needs to be received from the Region Office.
      1. The computer record needs to be changed to "disposed" in the Location area and the disposition date added in the final column.
   2. At the end of the year, compile a list of "Disposals" for the Auditor to review during the annual audit.

General Inventory

1. An up-dated inventory will be maintained at the central office in the form of a Master Inventory and individual Site Inventories.
2. When new resources are purchased and distributed, it will be indicated on the P.O. and packing list that the item has been received and where it has been distributed to.� A copy of that P.O. will be routed to the €œInventory Manager so that the item(s) are added to the Master Inventory and the appropriate Site Inventories.
3. When equipment ( except for starred * items) changes status through donation, purchase through fundraising, change of location or discard, an E-mail is sent to the Regional Assistant who will then generate an €œInventory Change Form and route it through the Regional Manager to the €œInventory Manager�€�.
4. In the Spring of each school year, inventories of all sites will occur, including consumable and non-consumable items.
   1. Each educational site will be inventoried by a Regional Assistant, with the help of one teacher.
   2. The Warehouse will be inventoried by the Facilities Maintenance Manager.
   3. The administrative offices will also be inventoried.
   4. The spring inventory will be taken using the up-dated Inventory list provided by the Inventory Manager.
   5. A fall inventory will occur for educational sites used for summer programs.
5. The spring inventory of Educational Regions will be entered into the Data system by the end of closeout week by the Regional Assistants. For administration by July 1.
6. Regional Managers and Consultants will receive a current Spring Inventory Report of Non-Consumables within 1 week of completion of Data entry, to be generated by the €œInventory Manager. In addition, Regional Managers and Consultants will receive a current Inventory Report within 1 week of a request, to be generated by the €œInventory Manager�€�. These reports will include a compilation by site, and by region.� The reports will be reviewed for:
   1. Missing items.
   2. Unmet needs.
   3. Items needing replacement due to wear and tear.
   4. Duplication of resources.
   5. Items discarded.
7. Decisions will be made regarding the moving of resources, replacement of resources and� the purchase of new resources based on the inventory report, budgetary considerations  and program considerations.