Capital equipment is defined by Federal and State regulations as “an article of tangible personal property that has a useful life of more than two years and an acquisition cost of $5000 or more”. In order to maintain program quality, assure the protection of valuable resources and give a basis for sound decision making, an accurate and current inventory of all equipment and supplies will be maintained.


Capital Equipment

  1. Any single item with a value of $5000 or greater will be considered capital equipment.
  2. Once the item (has been) is purchased or donated, (assign the item) an Inventory Number will be assigned. Capital equipment will have has a four digit inventory number, which will be pre-printed on an 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 security. The manager must account for the item in the inventory check at the end of each school year. Adequate maintenance procedures will be implemented to keep the equipment in good condition.
    2. The Operations Director will be responsible for security of the equipment in the Central Office and will account for the items in the inventory check at the end of each school year. Adequate maintenance procedures will be implemented to keep the equipment in good condition.
    3. For capital equipment available to check out, the procedures will be as  follows:
      1. If equipment is stored at a region, the Regional Assistant will be responsible for monitoring that equipment, including checking the equipment out and in and maintaining a log recording this activity.
      2. For equipment stored in the Central Office, the Executive Administrative Assistant will be responsible for monitoring that equipment.
  3. The Operations Director 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 Operations Director who will document, investigate, and communicate the appropriate information to the insurance agent.
  4. The inventory number will 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. 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 will be summarized in the Fixed Asset Spreadsheet in Excel on the computer. Each item will be entered and the information recorded 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 and Deletions” for the Auditor to verify during the annual audit.
  6. When capital equipment is to be sold and the Federal Government is to have a right to part or all of the proceeds, 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 must be received from the Region Office.
      1. The computer record will be changed to “disposed” in the Location area and the disposition date will be added in the final column.
    2. At the end of the year, a list of “Disposals” will be compiled for the Auditor to review during the annual audit.

This policy complies with HeadStart Performance Standards 1301.
It was approved by PolicyCouncil on April 24, 2001. August 14, 2007
Board of Directors approved on November 17, 2009
Updated January 25, 2001
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