/ Baltimore City Public Schools (City Schools)
Department: Data Monitoring And Compliance
Subject: Grants Inventory & Tagging Process
(FY 2016)

I. Purpose:Explain the Grants Inventory & Tagging process to recipients of Federal/State

categorical funds to accurately and efficiently report equipment purchases, as required by the new EDGAR requirements under 2CFR Part 200and the Maryland State Department of Education (MSDE).

II.Governing Policy/Regulatory Implications:

  1. New EDGAR requirements under 2CFR Part 200-
  1. MSDE Financial Reporting Manual for Maryland Public Schools (Revised 2008) -

III.Implementation Guidelines:

The following contains New EDGAR requirements under 2CFR Part 200 – Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards:

  • Inventory and Property Management
  1. Property Classification (Equipment, supplies, “Highly Walkables” and Computing Devices.
  2. Inventory Procedures
  3. Loss, Damage or Theft
  4. Disposition

§200.313 Equipment.

  • Use the equipment for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project.
  • Not encumber the property without approval of the Federal awarding agency or pass-through entity.
  • Use and dispose of the property in accordance with paragraphs (b), (c) and (e) of this section.
  • A Local Educational Agency (LEA) must use, manage and dispose of equipment acquired under a Federal award by the state in accordance with state laws and procedures.

Use. Equipment must be used by the non-Federal entity in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award, and the non-Federal entity must not encumber the property without prior approval of the Federal awarding agency. When no longer needed for the original program or project, the equipment may be used in other activities supported by the Federal awarding agency.

ManagementRequirements. Procedures for managing equipment (including replacement equipment), whether acquired whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements:

  1. Property records must be maintain that include a description of the property/equipment, a serial number or other identification number, source of funding for the property/equipment, the acquisition date, and cost of the property/equipment, the location, use and condition of the property/equipment, and any ultimate disposition data including the date of disposal.
  1. A physical inventory of equipment shall be taken and the results reconciled with equipment records at least once every two year.
  1. A control system shall be in effect to ensure adequate safeguards to prevent loss, damage, or theft of equipment. Any loss, damage, or theft must be investigated.
  1. Adequate maintenance procedures shall be implemented to keep equipment in good condition.

Disposition. When the 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, the LEA must request disposition instruction from the 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 Federal awarding agency disposition instructions:

  • Items of equipment with a current per unit market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding agency.
  • Except as provided in §200.312 Federally-owned and exempt property, paragraph (b), or 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 non-Federal entity 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 non-Federal entity to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses.
  1. Instructions for Inventory and Tagging

Special Note:

  • At the beginning of each grant period, Grant Managers will distribute Inventory Tags to appropriate cost centers managers in order to facilitate the Grant Inventory Process of Tagging equipment purchases. Only cost centers that have indicated equipment purchases within their spending plans and/or budget narratives will receive tags. If a cost center manager amends the original spending plan, he or she should contact the Grant Manager to request Inventory tags.
  • Recipients of federal/state categorical funds (public and non-public schools, Central Offices, and Charter/Transformational schools) are to adhere to the following procedures when purchasing equipment:

Acquisition

Ordering

  1. User enters purchase request into K12BUY using the correct budget account string (See Schedule A for Grant Inventoriable items).
  2. The budget account number will be verified by all individuals approving or processing

the requisition.

  1. Approved requisition will generate a purchase order (PO) and sent to the vendor.

Receiving

  1. Upon receipt of purchased items, verify the items received to the purchase order.
  2. Inspect all items received. If an item is damaged or missing, contact the vendor.
  3. Reminder: Enter the receipt of all items into K12BUY.

Tagging

  1. For each inventoriable item received, affix an Inventory Tag to the item.
  2. Access the Grant Inventory system found on the Principal’s Dashboard.
  3. Locate the purchased item listed within the pre-populated Grant Inventory Report screen and record:
  • The Inventory Tag Number and Date Tagged
  • Identify the room location where the item is to reside
  1. SAVE data prior to exiting the Grant Inventory Report screen.

Lost or Stolen Equipment

  1. Contact School Police immediately and file a formal police report.
  2. Go to the Grant Inventory System and edit the Inventory database to reflect the stolen/loss status of the item.
  3. SAVE edited data prior to exiting the Grant Inventory Report screen.
  4. Attach copies of Police Reports for all stolen/loss items during the year to the

Annual Grant Inventory Report for system filing.

  1. Lost and/or stolen items must be replaced. Federal and state funds cannot be used to replace lost/stolen items. The replacement item must be comparable to the item lost or stolen.

Disposals and Transfer of Equipment

  1. Access the Grant Inventory System through the Principal’s Dashboard.
  2. Print the Grant Disposal/Transfer request form.
  3. Complete, sign, and submit the form to the Grant Manager for approval.
  4. Upon approval, the Grant Manager shall provide necessary instructions for finalizing action steps in equipment disposal or transfer.

Annual Grant Inventory

By June 30th of each year, all recipients who purchased inventoriable items must complete a Grant Inventory Report.

  1. Access the Grant Inventory System found on the Principal’s Dashboard.
  2. Print the Annual Grant Inventory Report for your cost center.
  3. Verify the inventory and its location.
  4. Signand date the Grant Inventory Report.
  5. Submit the Grant Inventory Report to Data Monitoring and Compliance,

Central Office-Room201.

Contact Information:

Name of Contact Person:Kimberly L. Hoffman, Director

Phone Number:443-642-4190

Contact Email:

City Schools- Supporting Guidance – Grants Inventory & Tagging Process - (FY 2016) Page 1

SCHEDULE A -WALKABLES

**Refer to Individual Grant Guidance for allowable costs prior to using Schedule A

Equipment and Inventory with a Per Unit Cost of less than $5,000

0402AUDIO-VISUAL EQUIPMENT

Overhead projectors

Smartboards

Televisions

Sound Systems etc.

0403LAPTOP PORTABLE COMPUTERS

0404PRINTERS AND COPIERS

0405COMPUTERS AND RELATED HARDWARE

All computer and computer related equipment that is not a laptop or printer

0406COMPUTER SOFTWARE

0407MINOR PIECES OF EQUIPMENT

Furniture

Phones

Gym Equipment

Classroom Equipment

0421TEXTBOOKS

0422LIBRARY MATERIALS/BOOKS

Equipment and Inventory with a Per Unit Cost of greater than $5,000

0601CLASSROOM FURNITURE

0602LIBRARY EQUIPMENT

0603AUDIO VISUAL EQUIPMENT

0604DESKTOP WORKSTATIONS

0605LAPTOP PORTABLE COMPUTERS

0606HANDHELD COMPUTERS

0607PRINTERS AND COPIERS

0608PROJECTORS-FILM AND VIDEO

0609PLOTTERS

0611COMPUTERS AND RELATED HARDWARE

0612COMPUTER SOFTWARE

0631CAFETERIA EQUIPMENT

0632TOOLS AND UTENSILS

0641MINOR PIECES OF EQUIPMENT

0643VACUUM CLEANERS

0644LANDSCAPING EQUIPMENT

0653ATHLETIC EQUIPMENT & SUPPLIES

0658CELLULAR PHONE EQUIPMENT

0660OFFICE FURNITURE AND EQUIPMENT

0661PAGERS

0662TELEPHONE AND INTERCOMS

0663RADIOS AND PCS

0664FAX MACHINES

0665PERSONAL GROUP LISTENING SYSTEMS

0666WIRELESS COMMUNICATIONS SYSTEMS

0668HV/AC SYSTEMS

0669SECURITY AND ALARM SYSTEMS

0670SCANNERS

0671METAL DETECTORS

0672VIDEO CAPTURE EQUIPMENT

0673OPTICAL /MARK SENSE SCANNERS

0674ELECTRONIC SIGNATURE DEVICES

City Schools- Supporting Guidance – Grants Inventory & Tagging Process - (FY 2016) Page 1