Purchasing School Sites and the Importance of Inventory Management

Transcription

1 I N V E N TO RY P R O C E D U R E S July 2007 Revised July 2008 Marlanea Kirkbride, Director Purchasing Department Escondido Union School District 2310 Aldergrove Avenue Escondido, CA

2 Copyright 2007, 2008 Escondido Union School District Escondido, California Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 2 of 25

3 Table of Contents 1 OVERVIEW OF THE INVENTORY PROCESS PURPOSE OF THE INVENTORY WHO MANAGES THE INVENTORY? Purchasing Department School Office Managers: Technology Media Services: School Computer Technicians (SCT s): Librarians Nutrition Department Special Education District Office Maintenance & Operations (M&O) Custodial Maintenance M & O Offices, Shops & Fleet of Vehicles M&O Computer Equipment & Peripherals Warehouse WHAT SHOULD BE INVENTORIED? WHEN DO WE TAKE INVENTORY? OVERVIEW OF INVENTORY PROCEDURES INVENTORY REQUIRES PHSYICAL VERIFICATION CHANGE IN BAR CODE LABEL NUMBERING BAR CODE LABELS FOR NEW PURCHASES Computer equipment & Peripherals Non-computer equipment Large Furniture and Appliances REPLACEMENT BAR CODE LABELS SCT s & Librarians Replacing a Bar Code Label Office Managers Replacing a Bar Code Label District Office & Other Staff Replacing A Bar Code Label INVENTORY DATA FORM WHEN FIXED ASSETS ARE STOLEN WHEN FIXED ASSETS DON T WORK...12 Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 3 of 25

4 Repairs Cannibalize For Parts Surplus TAKING INVENTORY Organizing the Work for an Inventory Notify Your Team and Site Staff Preparing for the Physical Count Variance Reports Final Inventory Reports ONGOING MAINTENANCE OF DATA New purchases Inventory Data Forms Events you ll report with an Inventory Data Form: Inventory Reports in Excel Spreadsheets TMS Help Desk Database AV Equipment Band Instruments SURPLUS OF FIXED ASSETS Quarterly Surplus Cycle Overview of the Surplus Process Instructions for Creating Your Surplus List School Computer Technicians: Librarians: School Office Managers: Instructions for Digital Photographs for Surplus ANNUAL SURPLUS SCHEDULE...22 Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 4 of 25

5 1 O V E R V I E W O F T H E I N V E N T O R Y P R O C E S S 1. 1 P U R P O S E O F T H E I N V E N T O R Y California law requires us to take a physical inventory of certain fixed assets purchased with public funds and to report the inventory results as part of our accountability requirements each June. We are required to inventory each site, department, and facility every two years. Taking the inventory allows us increased control of fixed assets, monitoring the migration of assets from one site to another, providing accountability for staff that have assigned assets under their control, and for providing important data to our management staff for projecting purchasing decisions for long-range goals. The data gathered during inventory is used by a diverse group of people in making decisions about assets available for programs W H O M A N A G E S T H E I N V E N T O R Y? In 2007, EUSD made significant changes in the way the inventory process is managed. Prior to 2007, the Purchasing Department coordinated inventories taken by Office Managers for school sites. This process never worked well due to a lack of sufficient staffing to accomplish the massive amounts of paperwork and physical counts required. The new inventory process divides the responsibility of the inventory into more natural groupings, based on job functions and accessibility. The data is being divided among several groups, diminishing the amount of responsibility for each group individually. All of the data will be collected and ultimately merged together for a final report to the state by the Purchasing Department. The division of labor and accountability in our new procedures is as follows PURCHASING D EPARTMENT The Purchasing Department reports to the state auditors regarding our inventory reports, variances, and current status. The Director of Purchasing is the manager of the inventory procedures and inventory schedules for the district. If you have questions or concerns, you may address them to the Director SCHOOL O FFICE M ANAGERS: School Office Managers will generally inventory and reconcile the reports for fixed assets for their school sites for all items except Category 500 (Machinery & Equipment), Subcategories 1900 (Computer Equipment), 2000 (Computer Software), and 2100 (Audio-Visual Equipment). This means they will be responsible for office furniture over $500 purchase price, copiers, radios and walkie-talkies, lunchroom furniture, playground equipment, appliances in home Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 5 of 25

6 economics classrooms, equipment in industrial arts classrooms, and similar assets not specifically assigned to another group. Preschool/First5 will be inventoried as a school site, even though they have classrooms on multiple campuses. Special Ed classrooms will also be inventoried as a school site, even though they have classrooms on multiple campuses TECHNOLOGY M EDIA S ERVICES: TMS will generally manage the inventory and reconcile the reports for fixed assets for Category 500 (Machinery & Equipment), Subcategories 1900 (Computer Equipment), 2000 (Computer Software), and 2100 (Audio-Visual Equipment). They have divided their assigned inventory functions to two separate groups of employees based on job functions: School Computer Technicians (SCT s): School computer technicians will inventory ALL the computer equipment and peripherals at each site every year. They will maintain the inventory data in the TMS Help Desk database, as they will be using the same data to track repairs, warranties, licenses, etc. Their inventory responsibility includes computers, printers, scanners, laptops, software, and any other computer-related assets. They will continue to maintain the inventory for all assets in the TMS database for the life of the asset, without regard to depreciation or accounting life cycles. The TMS Network Manager will export the inventory data from the Help Desk database to provide reports to the Purchasing Department at the end of each school year. Inventory Variance Reports will be provided after the physical inventory is completed Librarians Librarians will inventory all AV equipment on all campuses and band instruments on elementary campuses. These items are typically managed and controlled by Librarians, so the inventory responsibility is a natural outflow of their job functions. Librarians will maintain inventory data in the Destiny database used by libraries to track books. This use of an existing database is intended to simplify the process for Librarians, so they are working in only one program and one database to accomplish their assigned tasks. Librarians will inventory digital and video cameras, audio and lighting equipment, sound mixers, LCD projectors, televisions, DVDs, VCRs, and other AV-equipment typically checked in and out to teachers, staff, or students through the library. Librarians will get the appropriate titles for asset descriptions from the Purchasing Department for new entries in the Destiny database. The TMS Network Manager will export the inventory data from the Destiny database and provide it to the Purchasing Department at the end of each school year, after the Librarians have completed their check-in cycles of AV Equipment and band instruments. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 6 of 25

7 Librarians will also inventory band instruments in elementary schools, as their job function is to check the instruments out to students at the beginning of a school year, and check them back in to the library at the end of the school year. Band instruments will be inventoried every year at the close of school, separately from other inventory cycles. Middle School Office Managers can choose to have their Librarians inventory band instruments, or delegate that task to their band teachers or other staff members at their discretion. The inventory will be maintained either in the Destiny database or the Master Inventory List provided to the Office Managers. Either approach is acceptable so long as the inventory is completed at year-end before the Office Manager leaves for the summer break NUTRITION D EPARTMENT The Nutrition Department will inventory all kitchens in all school sites separately from the schools general inventory data. Nutrition Department assets are purchased using separate funding, and will be maintained together in a special category. School sites will not be charged with any responsibilities regarding the assets in kitchens or serving lines, but will maintain the inventories for lunchroom furniture, such as lunch tables. A simple rule of thumb will be: the school office manager will inventory assets purchased with school s budget dollars. Assets purchased with Nutrition Department funds will be inventoried by the Nutrition Department. The Director of Nutrition will delegate staff to inventory the Nutrition warehouse equipment and fixed assets with a current value in excess of $500. This will not include inventory of consumable goods such as food supplies or frozen foods. TMS will inventory the Nutrition computer equipment and peripherals, and maintain that information in the TMS database SPECIAL E DUCATION Special Education will be inventoried through the Special Ed office at the district office, coordinating with school site staff to ensure each classroom in the Special Ed department is inventoried appropriately. TMS will inventory the computer equipment and peripherals, and maintain that information in the TMS database DISTRICT O FFICE The district office will be inventoried by department. Each department manager or supervisor will assign an inventory coordinator for each inventory cycle. Note: TMS will inventory the computer equipment and peripherals at the district office, in the same methods used for school sites. District office staff will inventory everything except Category 500 (Machinery & Equipment), Subcategories 1900 (Computer Equipment), 2000 (Computer Software), and 2100 (Audio-Visual Equipment). Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 7 of 25

8 1.2.7 MAINTENANCE & OPERATIONS (M&O) Maintenance & Operations is divided into two primary sections: Custodial and Maintenance Custodial Custodial staff delegated by the Custodial Supervisor will inventory custodial equipment and assets. Custodial equipment is kept in multiple locations including crew vans, school site storage areas, and M&O storage areas. Delegated staff will inventory all equipment and note its precise location as part of the inventory report. Custodial equipment purchased by school site budgets belong to the school sites; inventory of those items will properly reflect the schools as owners Maintenance Maintenance staff delegated by the Maintenance Supervisor will inventory all maintenance equipment and assets. Maintenance equipment is kept in multiple locations, including crew trucks/vans, school site storage areas, and M&O storage areas. Delegated staff will inventory all equipment and note its precise location as part of the inventory report M & O Offices, Shops & Fleet of Vehicles The Director of Maintenance & Operations will delegate a staff member to coordinate inventory of the offices, shops, warehouse(s) and fleet of vehicles. Delegated staff will inventory all equipment and note its precise location as part of the inventory report M&O Computer Equipment & Peripherals TMS will inventory the M&O computer equipment and Peripherals, and maintain that information in the TMS database WAREHOUSE The Director of Purchasing supervises the district warehouse and staff. She will delegate inventory responsibility to a member of her warehouse staff, and will manage all aspects of the warehouse inventory. TMS will inventory the computer equipment and peripherals, and maintain that information in the TMS database 1. 3 W H A T S H O U L D B E I N V E N T O R I E D? According to our Board Policies, AR s, and California state laws, we will inventory the following items: All items currently valued in excess of $500. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 8 of 25

9 1. 4 W H E N D O W E T A K E I N V E N T O R Y? We are required by state law to take inventory every two years. The current inventory schedule is as follows: YEAR MONTH SCHOOL OR DEPARTMENT E VEN N UMBERED S CHOOLS IN E VEN N UMBERED Y EARS July Nutrition (all kitchens & warehouse) July District Office (all departments including annexes) Sept Conway Oct Felicita Oct Mission Middle School Nov Lincoln Nov Oak Hill Dec Rose Jan North Broadway Feb Rincon Middle School Mar Pioneer Apr Bear Valley Middle School May Reidy Creek O DD N UMBERED S CHOOLS IN O DD N UMBERED Y EARS Sept Central Oct Del Dios Middle School Nov Glen View Nov Juniper Dec Miller Jan Orange Glen Jan Maintenance & Operations Feb Hidden Valley Middle School Mar Nicolaysen Community Day School Mar Preschool/First Five Apr L R Green Apr Rock Springs May Bernardo May Farr Avenue Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 9 of 25

10 2 O V E R V I E W O F I N V E N T O R Y P R O C E D U R E S 2. 1 I N V E N T O R Y R E Q U I R E S P H S Y I C A L V E R I F I C A T I O N Taking the inventory means we must physically locate every fixed asset on the inventory list, verify the tag number is still readable and present, and verify any other information about the asset in our database. This means that ALL fixed assets must be brought to the school for inventory, no matter where they are usually stored. Laptop computers, digital cameras, and all other fixed assets must be physically counted during the inventory. A verbal assurance from someone that I have the laptop at home is not sufficient to meet the state or the district requirements C H A N G E I N B A R C O D E L A B E L N U M B E R I N G In June 2007, we abandoned the F-tags as designators for Categorical Fund purchases. This information is now being maintained in the Inventory Database (in the field designated for Funds). All inventory bar code labels ordered by EUSD in the future will begin with a letter designation, such as the F-tag, to meet the requirements of scanning labels into the Destiny database. You do NOT need to re-tag assets that have the old bar code labels with no letters on them unless you are entering those fixed assets into Destiny. If you need the letter tags in order to add the asset to Destiny, you may replace the existing bar code label with a new letter tag, recording the old label number in the database as well as the new label to maintain an audit trail for the fixed asset B A R C O D E L A B E L S F O R N E W P U R C H A S E S As the district makes purchases of new fixed assets, the following procedures will insure the assets are added to the district s inventory database. New purchases will be delivered to the EUSD warehouse (except large furniture and appliances, which will be delivered directly to the destination site.) COMPUTER EQUIPMENT & PERIPHERALS For computer equipment and peripherals routinely delivered to Technology Media Services (TMS), fixed assets will be delivered to them unopened. TMS will apply the bar code labels as they open the boxes, and record the numbers and information into their database. TMS will capture the serial numbers along with the bar code label into their database, and also identify the school or site location for the owner of the equipment. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 10 of 25

11 2.3.2 NON- COMPUTER EQUIPMENT Warehouse staff will add new fixed assets to the database (other than computer equipment being processed by TMS), apply a bar code label, and record the information into their database before delivering the new purchases to schools or other sites. They will capture the serial numbers, along with bar code labels into their database, and also identify the school or site location for the owner of the new fixed asset LARGE F URNITURE AND A PPLIANCES There are times when large pieces of furniture or large appliances might be delivered directly to a school site or district location. In that event, the office manager or site supervisor will apply the bar code label and send the information to the Purchasing Department, including the serial numbers and purchase order information. The Inventory Data Form, an Adobe fillable form, is available on the District X: drive in the FORMS folder for accomplishing this task R E P L A C E M E N T B A R C O D E L A B E L S There are times when a bar code label must be replaced because the original is damaged, unreadable, unscannable, or missing. School Computer Technicians may replace these labels for computer equipment and peripherals, Librarians for AV Equipment or band instruments, Office Managers for other school site assets, department managers for assets other than those owned by school sites. If you need a supply of replacement bar code labels, send an request to the Warehouse Supervisor. They will be sent to you in the interoffice mail SCT S & LIBRARIANS R EPLACING A B AR C ODE L ABEL If an SCT or Librarian needs to replace the bar code label for computer equipment or peripherals, he will record the OLD tag number in the database in the appropriate field, then record the NEW tag number in the database in the current tag number field. While making the changes, he will verify the serial numbers are correct for the bar code label change OFFICE M ANAGERS R EPLACING A B AR C ODE L ABEL Office Managers may replace a bar code label for non-computer equipment on her school site. She will complete an Inventory Data form, including the OLD tag number and NEW tag number, and then submit the form to the Purchasing department. Purchasing will acknowledge the change has been updated in the database by return . The office manager will also be able to see the updates on the master inventory on the district network. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 11 of 25

12 2.4.3 DISTRICT O FFICE & OTHER S TAFF R EPLACING A BAR C ODE L ABEL District Office and other staff replacing a bar code label will follow the same directions for an Office Manager replacing a bar code label I N V E N T O R Y D A T A F O R M The Inventory Data Form can be found on the X:\ drive, in the FORMS folder. This is an Adobe fillable form. Complete the form, save it to your school network drive or your own hard drive, and then it to Purchasing as an attachment. If you are transferring an asset to another site, the form to the receiving site so the office manager can sign the form acknowledging receipt of the fixed asset. It would then go to Purchasing after both office managers have signed the form. Electronic signatures are acceptable on this form W H E N F I X E D A S S E T S A R E S T O L E N Complete an Inventory Data Form, including the Police Report # and date. Send the Inventory Data Form to Purchasing as an attachment to an . Purchasing may request a copy of the Police Report by fax or interoffice mail. Purchasing will update the inventory database to reflect the stolen asset; you will receive a confirmation from Purchasing when that is completed. You ll be able to see the fixed asset listed as stolen on your master inventory database when you receive the confirmation from Purchasing W H E N F I X E D A S S E T S D O N T W O R K If you have a fixed asset that is no longer working, there are several options to determine the best solution. The school principal or site manager should make the initial assessment to determine the best course. If the fixed asset is a computer or computer-related, please discuss the best options with the TMS Network Manager before deciding your course of action Repairs Consider having it repaired. If the fixed asset can be repaired for a reasonable investment, consider this as an option. If the fixed asset is a computer or computer peripheral, the TMS team will help you explore this option for assessment of cost benefits. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 12 of 25

13 Cannibalize For Parts If the fixed asset cannot be repaired, or the repairs are too costly, consider cannibalizing it for parts to repair other similar assets. If this is possible, submit an Inventory Data Form to change the category to PARTS in the inventory database. This tells us the asset is still in the district, but is being cannibalized. Once you have taken all the parts from the asset that might be needed, you will need to process the remaining carcass what s left of the asset to surplus it out of your inventory completely. Just complete another Inventory Data Form, moving it out of the Parts category to a surplus request. The Purchasing Department will process your request, and when they auction the asset, they will have necessary information to share with bidders that it has been cannibalized. It is not necessary for you to list the specific parts taken from the asset it is sufficient to inform Purchasing and the bidders that it has been cannibalized in part Surplus If using the asset for parts for other repairs is not a viable option, you can surplus the broken asset. (See the instructions for the surplus process.) Surplus of computer equipment requires the approval of the principal or site manager AND the TMS Network Manager. Together they will decide if surplus is the best option, or if the equipment should be transferred to another location, cannibalized for parts, or surplused. Complete an Inventory Data Form requesting the asset is surplused. Indicate on the form that it is broken or not working, so that Purchasing will be able to post that information on the auction. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 13 of 25

14 3 T A K I N G I N V E N T O R Y When it is time to take inventory at your site, it s important to organize your team and your workflow before beginning. Following these methods will make the inventory relatively painless and more efficient ORGANIZING THE W ORK FOR AN I NVENTORY You ll want to organize your work based on the job functions described in the section entitled Who Manages The Inventory? on page 5. Knowing who is responsible for each piece of the inventory will help you schedule the processes and coordinate with other inventory task teams NOTIFY Y OUR T EAM AND S ITE S TAFF It will be helpful to you to inform your inventory team and all of your site staff of the inventory in advance. You ll want to send out notices giving the dates and times of the inventory so that all fixed assets will be returned to your site for the inventory. This will include items stored in places off-site (such as laptop computers and digital cameras.) Staff members must bring in all assets for the inventory they must be physically counted and verified before you can check them off your list. It is not acceptable for a staff member to offer verbal assurance they have possession of a fixed asset it must be inspected and counted PREPARING FOR THE P HYSICAL C OUNT Begin with a current printout or Excel spreadsheet of your inventory. Check off each item as you physically locate it to verify its presence at your site. Fill in any missing information (serial numbers, model numbers) as you work through the list, to update your inventory database. Your report should have been updated on a continuous basis, to reflect items that have been transferred to other school sites, items surplused out of your inventory, and new items purchased since your last inventory. If you are unable to find items from your report on your site, see if you can locate others who might know where the missing assets have been moved, transferred, or what has happened to them. You must ultimately identify every item on your inventory report as located or missing with explanations for those items that are missing. The amnesty program for missing fixed assets was in place only during the school year, while we were making a massive clean-up of our database. That amnesty program has now expired. Any items not declared missing during that inventory cycle must be located or explained in subsequent inventories. You should also make sure all your new purchases are on the inventory report. If you find recent purchases not listed, write them onto your list so they can be researched and updated. SCT s should return completed inventory packets to the Network Manager at Technology Media Services. He may require these to be in electronic format, or they may be data exported from Destiny or an Excel spreadsheet. He will Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 14 of 25

15 incorporate the data with the data from all other schools in the current inventory cycle, and report the variances to the Purchasing Department. The Network Manager of Technology Media Services is tasked with the responsibility of inventorying all computer equipment and computer peripherals for the entire district his instructions regarding the ways and methods of inventorying those items and deadlines to accomplish those tasks are to be followed carefully. Nutrition staff should return completed inventory packets directly to the Purchasing Department. School office managers, department managers at the district office, maintenance offices, and warehouses will also return their inventory packets directly to the Purchasing Department within the deadlines provided VARIANCE R EPORTS Variance reports will be returned to you for reconciliation after you have submitted your inventory packets. These variance reports will identify assets that are missing after your physical inventory count, as well as assets requiring additional information (such as the bar code label numbers.) Complete the information requested in the Variance Report and return them to your inventory management team (either Purchasing or TMS) FINAL I NVENTORY R EPORTS After your variance reports are processed, you will be sent a final inventory report closing out your inventory for the current cycle. You ll also be able to access the inventory reports on the district network, so that you can monitor the status of your fixed assets. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 15 of 25

16 4 O N G O I N G M A I N T E N A N C E O F D A T A Ongoing maintenance of the inventory database will allow you to monitor the status of your data. Continual upkeep will make the inventory process easier to manage during the inventory cycles. Our new procedures are addressing some of the obstacles from previous methods to improve the quality of ongoing maintenance of the database NEW PURCHASES New purchases will arrive at school sites with the bar code label already attached, and the bar code information recorded in the inventory database. School Office Managers will no longer have this responsibility tasked to them. (Exceptions to this rule: large furniture and large appliances delivered directly to school sites, without first being processed by our warehouse staff or TMS staff. Office Managers will affix these bar code labels and submit the information via an Inventory Data Form.) INVENTORY D ATA F ORMS The Inventory Data Forms are universal forms to process all of the data changes necessary in the database. When you submit a Data Form to Purchasing, you will receive confirmation by return that the change has been entered into the inventory database. You ll also be able to see the updates on the master inventory database Events you ll report with an Inventory Data Form: New Fixed Asset shipped directly to your school site or office, rather than through the Warehouse. (Apply a bar code label, complete the form, and submit it to Purchasing as an attachment to an .) New Fixed Asset donated to the school site or district (either new or used), and not coming to you through the warehouse or purchasing system. Replacement of a bar code label. Report the OLD tag number and the NEW tag number for a Fixed Asset. Stolen fixed assets. Include information about the Police Report on the form. Transfer of a fixed asset to another school site or department. Fixed assets processed for surplus INVENTORY R EPORTS IN E XCEL S PREADSHEETS Inventory reports will be maintained as Excel spreadsheets, available to Office Managers on the district network for viewing and printing. Inventory reports will be updated continuously, adding new fixed assets and adjusting for transfers, thefts, and other changes. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 16 of 25

17 Office managers will be given access to update surplus requests once each quarter. A surplus calendar has been published by the Purchasing Department, and is included in this manual. You must process your surplus requests during the window of time provided, or wait until the next quarterly cycle. (See the instructions for the surplus process in this manual.) Please review the inventory reports for accuracy periodically. If you have a significant number of new purchases or changes in your fixed assets, it would be helpful to review those transactions for accuracy while they are still easily verified and changed. Minor changes and revisions along the way will make the inventory process cleaner and easier for everyone TMS HELP D ESK D ATABASE All computers and peripherals will be maintained in the TMS help desk database. This means SCTs working with computer equipment will be managing the current inventories on an on-going basis, updating the database to reflect repairs, surplus requests, new purchases, etc. Their daily routines will automatically maintain the inventory database for computers and computer peripherals for every department and every school site in the district. The TMS team will take the physical inventory counts and provide variance reports and inventory records to Purchasing each year for the state audits of schools in that year s inventory cycle AV EQUIPMENT All AV equipment for all school sites will be maintained in the Destiny database in school libraries. In the course of checking AV equipment in and out, the Librarians will also be maintaining the inventory database as they conduct their daily routines. Each year the TMS team will export the necessary data from Destiny to Purchasing, providing the means for inventory reports for state auditors BAND I NSTRUMENTS All band instruments for elementary schools will be maintained in the Destiny database in the school libraries. School Librarians check the instruments in and out to students at the beginning and ending of each school year. As instruments are checked back in at the end of the school year, Librarians will be asked to scan the remaining instruments as well, giving a complete inventory of all band instruments in the process. TMS will export the data from the Destiny database for Purchasing. Middle School Office Managers may choose to maintain the inventory of band instruments in the school site database, or they may include their band instruments in their Destiny database through the Librarian. Band instruments will be inventoried at check-in at the end of each school year, on a separate schedule from other physical inventory schedules. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 17 of 25

18 5 S U R P L U S O F F I X E D A S S E T S If you have fixed assets no longer needed or assets that are broken, you can use the surplus process to remove them from your campus and from your inventory database. State law dictates to us how we will conduct the surplus process, so please be very careful to follow the directions closely QUARTERLY S URPLUS C YCLE You will be offered the opportunity to submit fixed assets to the surplus process once each quarter. Purchasing has included a calendar of all the surplus milestones and events each year in this manual, so that you can plan your surplus projects accordingly OVERVIEW OF THE S URPLUS P ROCESS The primary steps in the surplus process include: Submitting a list of fixed assets for consideration as surplus items. o If the items to be surplused are computers or computer peripherals, you must first submit the list to the school site principal for approval (department manager for district office departments.) o If the items to be surplused are computers or computer peripherals, after the school site principal has approved them for surplus, the list must be submitted to the Network Manager in Technology Media Services. The TMS Network Manager will respond to the principal with suggestions to repair the equipment, a request to transfer the equipment to another school site or district location, a request to cannibalize it (use the equipment for parts to repair other similar equipment), or approval to surplus the asset. o If the assets are in the Destiny database, the list must be submitted to the school site principal first for approval, then to the Director of Media Services for approval before being forwarded on to Purchasing for submittal to the Board of Education for approval. If the principal approves the list, it must be submitted to the Director of Media Services for consideration. The Director may request the transfer of the asset to another school site or location within the district if there is some other group who would be able to use the asset to the benefit of our students. If there were no other schools or locations to use the asset, the surplus request would be forwarded on to Purchasing to submit to the Board of Education for approval. o If the items are not computers or computer peripherals, and are not inventoried in the Destiny database, the list must be submitted by the School Office Manager to the school principal for approval. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 18 of 25

19 If the principal approves the list, it must be submitted to the Purchasing department for consideration. Purchasing may request the principal transfer the asset to another school site or location within the district if there is some other group who would like to use the asset. If there are no other schools or departments requesting the asset, the surplus request will be approved. Purchasing will submit a list of fixed assets to be surplused to the Board of Education for approval. o The list must be placed on the agenda of the next Board meeting before it can be considered. This can mean a wait of from two to four weeks, depending on whether the Board is meeting bi-weekly or monthly. Board approval of the list will be given to Purchasing after their review and consideration. The approved items will be listed in an online public auction for sale by the District. The auction will be open for a minimum of four days before closing the bidding process. o If the asset does not sell in the first auction, Purchasing will list it for sale again in a second auction, also open for a minimum of four days before closing the bidding process. After the auction closes, Purchasing will notify you of the auction results. o If the asset sold, Purchasing will notify you of the winning bidder s name and expected pick-up date. The bidder must bring you a receipt from Purchasing to prove they have paid for the asset before picking it up. Once you have verified the receipt, you can release the asset to the winning bidder. o If the asset did not sell, Purchasing will notify you of the proper disposal of the fixed asset. This could include: Pick-up by a recycling company Pick-up by a scrap metal company Instructions to put the asset in your dumpster Pick-up by our waste disposal contractor Delivery of a special dumpster to dispose of the fixed assets if there are a large number of items INSTRUCTIONS FOR C REATING Y OUR S URPLUS L IST When you want to create a list of fixed assets to submit to the surplus process, you will begin with the published schedule from Purchasing for the surplus process. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 19 of 25

20 School Computer Technicians: For computers and computer peripherals, the School Computer Technicians (SCT s) will prepare the list for approval in accordance with the directions of the Network Manager. This list will be generated from the Help Desk database, by marking the assets to be submitted for surplus in accordance with the instructions from TMS. That list will be submitted to the school principal and office manager for approval first. Once the principal has approved the list, it will be submitted to the Network Manager for approval. When that approval has been granted, the Network Manager will forward the list to Purchasing, along with digital photographs of the assets being submitted for surplus approval by the Board of Education. Once the items have been through the surplus process and are no longer at the school site, the SCT s will complete their inventory cycle by marking the items disposed and moving them off the current inventory database into the disposed database Librarians: For assets inventoried in the Destiny database, Librarians will mark the assets to be submitted for approval as surplus in their database as surplus in the old tag number field. Librarians will generate a list of assets being submitted for approval as surplus, along with digital photographs of the assets. The list and photographs will be sent to the Director of Media Services for approval. After the Director has approved the list, it will be forwarded on to Purchasing for submittal to the Board of Education for approval. Once the assets have completed the surplus process and are no longer on the campus, the Librarians will mark the items weeded out and move them to the weeded database, removing them from the current database School Office Managers: For assets inventoried in the Purchasing database, managed by School Office Managers, the master inventory list will be made accessible to Office Managers once each quarter. The Office Manager will change the Status field to Surplus, enter the date of the request, and in the comments field make a notation whether the item is working or not working. The Office Manager will then a digital photograph of the asset to Purchasing (vhowe@eusd4kids.org). (Note: fields highlighted in yellow will be accessible to Office Managers. Other fields are protected and cannot be modified.) Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 20 of 25

21 5.1.4 INSTRUCTIONS FOR D IGITAL P HOTOGRAPHS FOR S URPLUS Fixed assets submitted for approval as surplus must be documented with digital photographs. The photographs are to be ed with the lists at each stage of the approval process to the school Principal, the Network Manager, Director of Media Services, and Purchasing Department. The digital photographs will ultimately be used in the online auction of the surplus items. Digital photographs of fixed assets submitted for approval as surplus can be group photographs we do not need a photograph of each asset individually. If you have a pallet of equipment, one or two photographs clearly showing the products on the pallet will be sufficient. If you have assets gathered in a room, take two or three photographs of the room with the items submitted for surplus clearly identified. It should be absolutely clear to a bidder in an online auction precisely what is being offered for sale. Be careful you do not include assets in your photograph if they are not being offered for sale. Some photographs of fixed assets successfully sold at surplus action in the past are shown below as examples. These are intended to help you as you create your photographs. Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 21 of 25

22 5. 2 A N N U A L S U R P L U S S C H E D U L E Description Qtr 1 Qtr 2 Qtr 3 Qtr 4 1. Mark fixed assets in the database to be submitted for approval as surplus Week 3 Aug. Week 3 Nov. Week 3 Feb. Week 3 May 2. Principals approve lists generated from the databases Week 3 Aug Week 3 Nov Week 3 Feb Week 3 May 3. Approved lists from Destiny are forwarded to Director of Media Services for approval Aug Nov Feb May 4. Approved lists from TMS Database are forwarded to Network Manager for approval Aug Nov Feb May 5. Approved list from Office Managers Inventory Spreadsheets are forwarded to Purchasing for approval Aug Nov Feb May 6. Purchasing verifies assets submitted for surplus are not needed by other school sites or departments Week 2 Sept Week 2 Dec Week 2 Mar Week 2 Jun 7. Purchasing submits final lists for surplus requests to the Board of Education for approval 2 nd Meeting Sept Jan Meeting 2 nd Meeting Mar 2 nd Meeting Jun 8. Board approved surplus assets are posted in online auction. Instructions for disposal of assets successfully auctioned are sent to school sites at close of auction. Week 1 Oct Week 1 Feb Week 1 Apr Week 1 July 9. Board approved surplus assets are posted for second online auction (if they did not sell in first auction) Week 2 Oct Week 2 Feb Week 2 Apr Week 2 July 10. Instructions for disposal of assets not sold in either auction are sent to school sites Week 3 Oct Week 3 Feb Week 3 Apr Week 2 Aug 11. Librarians move surplused assets to weeded out status. SCT s move surplused assets to disposed status. Purchasing moves surplused assets to disposed status. Oct Feb Apr Aug Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 22 of 25

23 Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 23 of 25

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25 Policies and Procedures created July 2007 Published August 2007 Revised & Republished July 2008 Escondido Union School District 2007, 2008 Inventory Procedures Revision July 2008 July 1, 2007: Revised July 2008 Page 25 of 25