4:080-AP3 Inventory Management for Federal and State Awards
This procedure applies to property acquired by the District under federal grant awards or State grant awards governed by the Grant Accountability and Transparency Act (GATA) (30 ILCS 708/).
Property – real or personal property. 2 C.F.R. §200.81.
Equipment – Tangible personal property (including information technology systems) having a useful life of more than one year and per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the District for financial statement purposes, or $5,000. 2 C.F.R. §200.33
Supplies – All tangible personal property other than equipment. 2 C.F.R. §200.94
Acquisition Cost – The cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software includes those development costs capitalized in accordance with generally accepted accounting principles (GAAP). Ancillary charges, such as taxes, duty, protective in transit insurance, freight, and installation may be included in or excluded from the acquisition cost in accordance with the District’s regular accounting practices. 2 C.F.R. §200.2
|Business Manager and/or Designee||Recordkeeping – 2 C.F.R. §200.313(d)(1) and (2)
3. Takes a physical inventory of the property and reconciles the results with the records at least once every two years.
Maintenance and Safeguarding – 2 C.F.R. §200.313(d)(4)
Title and Use – 2 C.F.R. §200.313(a) and (c)
3. If the equipment is to be used for non-federally or non-State-funded programs or projects, considers charging user fees. Any fees charged for equipment services acquired under an award must be equal to or greater than what private companies charge for equivalent services, unless specifically authorized by statute, for as long as the government retains an interest in the equipment
4. Ensures that title to the property is not encumbered without the approval of the awarding agency.
Disposition – 2 C.F.R. §200.313(e)
The awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the awarding agency’s percentage of participation in the cost of the original purchase. If the equipment is sold, the awarding agency may permit the District to deduct and retain from the agency share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses.
7. When appropriate, arranges for the trade-in of equipment to be replaced or sale of the property when acquiring replacement equipment. Proceeds from the trade-in or sale may be used to offset the cost of the replacement equipment.
Note: If the District fails to take appropriate disposition actions, the awarding agency may direct the District to take disposition actions
|Staff Members Who Receive Equipment/Supplies as Part of Their Job Duties||Use the equipment/supplies for the purposes authorized by the grant during the grant period, or until the property is no longer needed for the purposes of the project.
Properly use the equipment in accordance with the manufacturer’s instructions.
Produce the equipment/supplies when requested by the Business Manager or designee, whether for inventory, scheduled maintenance, repair, or other purposes.
Take reasonable steps to prevent damage to equipment and supplies in accordance with 4:80-AP1, Internal Control Checklist.
Report any fraud, waste, or abuse of property in accordance with 4:80-AP2, Fraud, Waste, and Abuse Awareness Program.
Immediately report lost or stolen equipment/supplies to the Business Manager or designee.
Return the equipment/supplies when requested by the Business Manager or designee or if it is no longer needed.
Date Adopted: January 21, 2020