TABLE OF CONTENTS


1 INTRODUCTION
1.1 Rationale
1.2 Overview
1.3 Definition of Terms
2 REGULATIONS
2.1 Responsibility for Inventory Records
2.2 Retention Guidelines
2.3 Operative Dates
2.4 Categories of Property that are Inventoried
2.5 Method of Inventory
3 PROCEDURES
3.1 How to Implement the Physical Inventory
3.2 Guidelines for the Inventory of Equipment
3.3 Guidelines for the Inventory of Supplies
3.4 Guidelines for the Inventory of Textbooks
3.5 What to do After the Inventory
3.6 How to Handle Missing or Stolen Items
3.7 How to Store and Secure Inventory Items
3.8 How to Distribute Equipment and Supplies
3.9 How to Dispose of Obsolete Equipment/Materials Located in Schools and Administrative Offices
3.10 How to Dispose of Obsolete Computer Equipment Located in Schools and Administrative Offices
3.11 How to Dispose of Obsolete Furniture
3.12 Additional Notes
4 INTERNAL CONTROLS AND/OR DELEGATION OF RESPONSIBILITIES
4.1 Delegation
4.2 Internal Controls
5 FORMS AND SAMPLES
5.1 Table of Exhibits
1. INTRODUCTION




1.1 Rationale


Every principal and site administrator should read this chapter and be thoroughly familiar with its contents. The chapter delineates exactly what items of equipment, types of supplies, or materials must be inventoried, how often, by whom, and how. The maintenance of accurate inventories of equipment, supplies, and textbooks is an important factor in creating the atmosphere necessary for effective teaching and learning. Inventory records that are up-to-date and accurate can guide a site administrator in ordering new materials, maximizing the use of resources on hand and in minimizing loss or theft.

This chapter will help you designate an Inventory Specialty Officer (ISO) – see definition in Section 1.3 - to implement and maintain inventory records and oversee all procedures related to inventory control. It will clarify the differences among equipment, supplies, textbooks and computer software. It will reflect a date (no later than April 15th) for the physical inventory of all textbooks, equipment and materials for the academic year. It will also provide forms, which have been used for Inventory Control. You may use these forms or utilize your own Inventory Database (recommended) using the forms as a guide for establishing the required “fields” in such a database.


1.2 Overview


Why
New York State Education Law (Section 2554, paragraph 4) specifies that "the Department of Education . . . shall . . . prescribe rules and regulations for the preservation of [its] property." This includes responsibility for taking a comprehensive inventory. In addition, federal property management requirements call for policies and procedures to manage and account for equipment purchased with federal funds under federal-direct and State-administered programs (reimbursable programs).
Who
Each site administrator is responsible for maintaining and updating the inventory records for his or her site and removing (discarding or transferring to another DOE site or outside entity) obsolete equipment from his/her site. He or she should designate an Inventory Specialty Officer (ISO), who is a responsible person and delegate to that individual the duties for conducting and monitoring inventory. (For internal control purposes, assignment to this task should be periodically rotated). Whenever any item is delivered to a site, the person responsible for accepting it verifies the receipt of the shipment and advises the ISO who has the responsibility for storage, distribution and/or inventory control.

What
All equipment, textbooks, computer software and educational and administrative supplies stored in large quantities, should be inventoried regardless of funding source. (For example, special education inventory items should be included in the inventory of the host school; however, special education field supervisors are expected to make themselves available to help the site administrator, principal, or designee with this procedure).

When
The annual updated inventory of equipment and large quantities of unused supplies in storage must be completed on an annual basis no later than April 15. School principals and site supervisors must electronically forward this “Annual Inventory Statement” (Exhibit A, Section 5.1) within 30 days of the completion of the inventory to their respective ROC/Central Office attesting that this activity was conducted. You may access this Annual Inventory Statement via the FAMIS Portal by:

Navigating to the website of the Division of Financial Operations (DFO) at  http://schools.nyc.gov/Offices/DFO/default.htm. Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Annual Inventory Statement.” Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).


Books and computer software should also be inventoried no later than April 15 to indicate the numbers on hand as of the completion date of the physical inventory.
If a project comes to an end or a site is closed, then there should also be a final inventory (which would include furniture). These records should be maintained at the respective site as well as the site where the items are being relocated. If necessary, an e-mail advising the ROC’s ISO that a FINAL inventory has been taken and is available at the site should be forwarded soon after the project ending or site closure.

Equipment No Longer Needed at a Site/School (Obsolete Equipment)
Section 3.9 and section 3.10 discusses in detail the procedures to follow when you wish to dispose of equipment classified into one of the following categories:

Category A (Section 3.9.3) – Unrepairable or Not Cost Effective to Repair

Category B (Section 3.9.3.1) – Technologically and/or Educationally Inappropriate for the Site or Safety Hazard to the Site.


From the “Disposition of Obsolete Equipment Form” (Section 5.1) an advertisement will be automatically generated and posted each Wednesday to DFO’s website. This advertisement will remain in effect for two (2) weeks from the date of original posting and then be removed. If no responses are received (see details in section 3.9) within the two (2) week time period, you are authorized to discard the item. Computer equipment must be discarded using Dell Managed Services (see details in section 3.10).

How
In the past, inventory records were kept on Inventory Lists and/or Cards. These lists and cards are no longer necessary since most sites have adopted a computer database to keep its inventory records. We strongly recommend for those sites who have not yet converted its inventory records to a computer database to do so immediately. Depending on what kind of computer hardware the site has available, it can choose from a variety of commercial database programs, or a staff member may wish to customize a program to suit the site's individual needs. We are providing facsimiles (see Topic 5 – Forms and Samples – Section 5.1) of the obsolete cards and lists so that you may view the various “fields” contained therein, since at the very minimum you must include these fields on your database program.
The computer database should be kept at one central location. However, backup copies may be kept at multiple locations if the site administrator deems it to be advisable. (Records for inventory must be kept according to the guidelines for record/property retention established by the NYS Education Department. Please see chart in Section 2.2 for details.


1.3 Definition of Terms


Administrator of a Site: see Site Administrator

Annual Inventory: The actual physical count of textbooks, equipment and supply items done once a year (no later than April 15) at a site. An “Annual Inventory Statement,” which attest that the inventory has been completed, is electronically forwarded to the ROC. (See Exhibit A, Section 5.1).

DOE Facility: Any site, whether owned or leased, at which Department of Education activities take place; an annual inventory is conducted even at a leased site.

Computer Software: For inventory purposes the term is used for all published and copyrighted computer programs, whether used for administrative or instructional purposes.

Equipment: Items which can be reused or which maintain their character through use, and usually costs at least $5000. Other such items, which may cost under $5,000 such as typewriters, video cameras, TV sets, tape recorders, science lab equipment, musical instruments, digital cameras, DVD players, etc. must also be inventoried.

Funding Source: Since funds are provided to purchase equipment from multiple funding sources for specific purposes, the federal or state funding source (reimbursable funds) under which the item was purchased (Quick Code) must be noted in inventory along with its percentage of the cost/amount of the equipment (e.g., Title 1 School-Wide Projects 01041675 50%/$500).

Fixed Asset: An item of equipment whose original purchase price equals or exceeds $35,000.
Inventory Specialty Officer (ISO): An all inclusive term to describe the individual selected by a ROC Director, superintendent, executive director, school principal or head of office whose major responsibility is to coordinate all aspects of inventory control including, but not limited to the removal of obsolete equipment (except for obsolete computer equipment), supervising and handling all records related to the physical inventory of all supplies, materials, textbooks, etc., and overseeing the receipt and removal of inventoried items. The duties and responsibilities formerly held by the property manager are now under the jurisdiction of the ISO. This position should be rotated periodically as a means of internal control.

Published or Copyrighted Materials: See Textbooks. (This term includes computer software as well as audio and videotapes used for educational purposes).

Serial Numbers: Usually marked indelibly on items of equipment as a means of maintaining inventory and discouraging theft.

Site: Usually refers to a school, but it might also be a regional or central office, ROC or an alternative education site or satellite location.

Site Administrator: The person charged with the operation of the site in question; it may be a principal or a program coordinator or a division director.

Special Inventory: A request made by a supervisor, auditor or ROC/region/central office to conduct an inventory specific to a particular need (e.g. OAG request for supplementary information following an audit). This inventory may be in addition to annual inventories required by this chapter.

Storage Facility: Any closet, room or cabinet where instructional or office supplies, equipment, and textbooks are stored for safekeeping and control.

Supplies: A supply item is any article which meets one or more of the following conditions: (1) is consumed in use or loses its identity through incorporation into a different unit or substance; (2) loses its shape or appearance with use; and (3) is expendable (cheaper to replace than to repair; generally purchased in object code 100 series).

Textbooks: For inventory purposes the term is used for all published and copyrighted materials of an educational/instructional nature; it does NOT include library books and books used for administrative, office, or reference use.
2. REGULATIONS




2.1 Responsibility for Inventory Records


Site Administrators are responsible for performing an annual physical inventory in accordance with the procedures outlined in this chapter in order to reconcile equipment, supplies, and textbooks on hand with the inventory records on file. Inventory of computers will be taken and maintained by Dell Managed Services. Please see Section 3.10 for additional details.

While the preliminary responsibility for maintaining inventory records rests with the site administrator (principal, or director, as the case may be), he or she may designate appropriate staff (i.e., ISO) to prepare and maintain these records throughout the year. Any administrator who is above this level (such as a superintendent or an executive director) also has the responsibility to see that the records of inventory are maintained, updated at required intervals, and reported as needed to city and state agencies.

The Office of Auditor General of the New York City Department of Education (OAG) includes inventory procedures in its annual field audits. Therefore, copies of records related to inventory must be readily accessible for inspection and audit by the OAG, as well as by the City Comptroller and authorized state, and/or federal officials.

Failure to conduct and properly maintain adequate inventory records in accordance with this Inventory Chapter of the SOP will require corrective action and may result in possible disallowances by the funding source.


2.2 Retention Guidelines


The chart in Section 2.2, part of the ED-1 Records Retention and Disposition Schedule established by New York State Education Department (NYSED), details the minimum length of time that school officials must retain their records and property before they may be disposed of legally.

You may access the entire schedule by going to the following website:

http://www.archives.nysed.gov/a/records/mr_pub_ed1.pdf 

The purposes of this Schedule are to ensure that:

(1) For administrative, legal and fiscal purposes; records/property is retained as long as needed;

(2) State and federal record/property retention requirements are met;

(3) Record/property series with enduring historical and other research value are identified and retained permanently; and

(4) A documented systematic disposal approach of unneeded records/property is maintained.

Item Retention Period
Property inventory records, covering buildings, facilities, vehicles, machinery and equipment, including "fixed assets" records and textbooks. 6 years after superseded by updated inventory, or 6 years after replacement, sale, or discontinuance of use of all property listed, whichever is sooner
Inventory of supplies 6 years
Data processing operating procedures, records of procedures for data entry, the operation of computer equipment, production control, tape library, system backup, and other aspects of a data processing operation 3 years after procedure is withdrawn, revised, updated, or superseded
System backup files, copies of master files or databases, application software, logs, directories, and other records needed to restore a system in case of a disaster or inadvertent destruction
NOTE: Backups used to document transactions or retained for purposes other than system security are covered by the relevant sections of this Schedule. For fiscal systems, monthly system backups are often retained for the entire fiscal year to provide an audit trail, and annual system backups are retained to meet all legal and fiscal requirements in lieu of copies of the individual master files or databases. These records should be disposed using items from the Fiscal section of this Schedule. It is advisable that for many application systems 2 or 3 copies of backups be produced during each cycle.
0 after 3 system backup cycles


2.3 Operative Dates


  • The annual inventory (physical count) of supplies stored in bulk, equipment, textbooks and other copyrighted educational materials stored at a site is required to be completed by April 15 of each year.

  • A signed “Annual Inventory Statement” (refer to Exhibit A, Section 5.1) is to be electronically forwarded to the respective ROC within thirty days (30) after the completion of the inventory. You may access the “Annual Inventory Statement” by:
    Navigating to the website of the Division of Financial Operations (DFO) at  http://schools.nyc.gov/Offices/DFO/default.htm. Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Annual Inventory Statement.” Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).


2.4 Categories of Property that are Inventoried


Before implementing an inventory process, each administrator or designee should have a clear understanding of the differences among the following three categories:

Supplies
Expendable materials such as paper, chalk, art supplies, writing Implements, copier machine chemicals, etc.

Equipment
Items which can be reused or which maintain their character through use, and usually costs at least $5000. Other such items, which may cost under $5,000 such as typewriters, video cameras, TV sets, tape recorders, science lab equipment, musical instruments, digital cameras, DVD players, etc. must also be inventoried.

Textbooks
Published and copyrighted materials used for instruction. Since instructional materials are no longer limited to printed documents, this category now includes audiotapes, videotapes, and computer software that are used for instructional/educational purposes.
Unique Categories
An inventory record is required of DOE property even if the item:

  • was purchased with tax levy, or reimbursable program funds;
  • was purchased with private contributions (such as PA/PTA funds) and donated to the school;
  • is used at home (e.g. laptop computer)
  • is operable but not in use;
  • is inoperable, but scheduled to be replaced;
  • is on loan;
  • is currently being housed at another Department of Education site i.e. Annex, (but not on loan); or
  • was purchased through the Teacher's Choice program or any similar program.


Please note that the following items do NOT have to be inventoried:

  • Workbooks after their initial distribution to classrooms. However, a “running” inventory should be kept of any stored undistributed workbooks;

  • Furniture;

  • Supplies (either instructional or office) unless they are stored in large quantities; and

  • Library books – Librarian’s traditional or computerized cataloging system will be considered as an ongoing inventory record. Funding source, e.g. “NYSLIB” should be marked on all library materials (see NYSLIB guidelines on the Division of Contracts and Purchasing (DCP) website located at: http://schools.nyc.gov/Offices/DCP/default.htm. Disposition of damaged, obsolete or excess stock should follow the same procedures as textbooks.
  • Computers. Dell Managed Services (see section 3.10) will perform all inventories of computers.

    Note: It is suggested that inventory records be kept for all classroom library materials in the same manner as textbooks.


2.5 Method of Inventory


The ISO at the respective site should make an entry on a computer database as soon as the item of property is accepted at the site.

  • A separate entry is required for each item.

  • Inventory computerized records are used for recording property.


However it is kept, the inventory should be accessible and comprehensible to any auditors who may come to the site throughout the academic year.

Please be vigilant of the following when keeping inventory records.

  • There should be continuous updating of your computer/electronic files, as changes occur.

  • A proper format should be used and complete information should be recorded for each item. Use the “fields” provided on the facsimiles in Topic 5 for the correct format.

Note:  Equipment must contain a serial number or another ID number to crosswalk to the inventory list. Labels, engravings or other markings on the equipment do NOT need to include fund source, cost, date or the other items required to be presen ton the full inventory list.

  • Full listing of the [property] files should be printed [periodically] and these listings should be kept on file.

  • There should be the usual system controls that accompany any Electronic Data Processing (EDP) operation. Examples include, but are not limited to a backup system limited access to terminals [and] access to programs and files limited to authorized personnel only.
3. PROCEDURES




3.1 How to Implement the Physical Inventory


Pre-inventory. The site administrator through his/her ISO should designate the person(s) to be specifically responsible for the counting and reporting operation. These staff members should be given every kind of cooperation including copies of the previous year’s inventory, all necessary forms, and access to areas where supplies or items of equipment are housed.

An update of the inventory records should be completed by April 15. This includes a physical inventory. Since the supplies inventory is perpetual, a good deal of the work can be done ahead of time and a random sampling will suffice. However, a careful count must be made if there is a glaring discrepancy between inventory records and actual quantities on hand.

Having the right forms. Samples of required forms are exhibited at the end of this chapter. For your convenience we have provided the following chart when planning your first inventory. Remember that forms/cards/lists have been rendered obsolete and have been replaced by an Inventory Computer Database.

Exhibit Description
A Annual Inventory Statement
B Request for Off-Site Equipment Use
C DOE Occurrence Report (Parts 1, 2 and 3)
D Disposition of Obsolete Equipment
D-1 BuyBack Book Program Form
Facsimiles Facs
No.
Provided in this section are the obsolete cards and/or lists that have previously been used to record inventory. These are being made available only as a reference so that your Inventory Computer Database may have, at the very minimum, the “fields” shown.
1
2
3
4
5


3.2 Guidelines for the Inventory of Equipment


How to Inventory New Equipment.
After certifying receipt of an item at the site, the ISO adds this to the appropriate section of the inventory database.

Note: Equipment must contain a serial number or another ID number to crosswalk to the inventory list. Labels, engravings or other markings on the equipment do NOT need to include fund source, cost, date or the other items required to be presen ton the full inventory list.

How to Handle Transfers of Equipment.
When a transfer is effected (for either tax levy or reimbursable equipment), the ISO at the first (original) site updates the Equipment Inventory Database and sends a copy to the new or receiving site. The original site must keep this transfer information on file per the chart in Section 2.2.

The new site must send to the original site a receipt acknowledging the delivery of the equipment. This receipt is attached to a printout of the Equipment Inventory. Then, the ISO at the new site should create a new Equipment Inventory Record based on the copy received. The copy should then be discarded, and all subsequent updates should be noted on the new database.

Also refer to sub-topic 3.9 concerning transfers of obsolete equipment other than computers.

How to Inventory Equipment at Non DOE Facilities.
In signing a Request for Off-Site Equipment Utilization (refer to Exhibit B – Section 5.1), the site administrator must be convinced that the utilization of the equipment at the site would be justifiable, work-related and essential to operations. Any item that is located at a non-DOE facility at the time of the annual inventory should be included in the school's or office’s inventory. The staff person(s) responsible for the equipment should appropriately log any equipment (e.g. laptop computers) used off-site by students (with written parental consent).

The off-site utilization of equipment is limited for use to the end of the school year. All equipment must be returned prior to the end of school term and be evaluated by the site ISO before renewing an off-site form.

The Request for Off-Site Equipment Utilization form may be copied/downloaded and customized from the sample given in Exhibit B – Section 5.1.


3.3 Guidelines for the Inventory of Supplies


A supply item is any article or material that is consumed in use, loses its original identity with use, is cheaper to replace than to repair, and is too inexpensive to capitalize. For inventory purposes, one need only be concerned with supplies (educational or office) that are being stored in large quantities in one location or storeroom for subsequent distribution.


3.4 Guidelines for the Inventory of Textbooks


For the sake of consistency, the physical inventory of printed and copyrighted teaching materials should be done no later than April 15. Any item of which there are fewer than ten (10) copies need not be noted. Since most of the books are in classroom use at the time of the inventory or are being stored in closets, storerooms, basements, and file cabinets throughout the school, the administrator and/or designee must count heavily on the teacher's record keeping.

Inventory records for books paid for from New York State Textbook Law (NYSTL) funds must be kept separate from other textbook inventory records. (For more details about NYSTL funded textbooks, refer to the SOP chapter titled "NYSTL").

Every published book has an ISBN (International Standard Book Number) that is a unique form of identification. Using this number will assure the person taking the inventory that there are no duplications or omissions.

Use a separate computer record for each ISBN.

On the Textbook Inventory Database, make note of every occasion when quantities of the specific textbook are received, distributed, returned, disposed of, lost or included in the annual inventory count. The annual physical inventory of textbooks should be completed prior to implementing procedures for redistribution of excess textbooks.


3.5 What to do After the Inventory


Inventory information is very valuable for educational, and fiscal planning and a requirement of New York State Education Law. The results of your inventory will require that certain steps be taken immediately.

  • Complete a new database entry for any required item that is not noted in the current inventory.

  • Investigate and report any missing or items per instructions in section 3.6.

  • Update inventory entries to reflect any changes in the status of the items.

  • When updating the inventory data base after the physical inventory, if it has been noted that an item is in need of repair, enter this on the inventory record. Make all necessary repairs immediately and update item’s condition on data base. (A vendor's receipt for equipment sent for repair should be attached to the inventory record, until the equipment is repaired and returned).

  • Designate obsolete or unusable supplies or equipment or excess textbooks for removal or destruction.

  • Schools/sites should electronically send a copy of the “Annual Inventory Statement” (refer to Exhibit A – Section 5.1) to the respective ROC/central office, which is responsible for the school or program within 30 days of the physical inventory. You may access this statement by:

    Navigating to the website of the Division of Financial Operations (DFO) at http://schools.nyc.gov/Offices/DFO/default.htm.  Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Annual Inventory Statement.” Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).

    The school/site should also maintain a file of the “Annual Inventory Statements” for possible future audit.


3.6 How to Handle Missing or Stolen Items


If, in comparing the current inventory results with that of previous year’s, it appears that an item (supplies, equipment or textbooks) is missing, the site ISO is responsible for taking the following steps:
  • Making every effort to locate the item in question.

  • Notify the principal, site supervisor or head of department if the item cannot be located.

  • Ensure that the Equipment Inventory Database reflects the loss, and is retained on file per the chart in Section 2.2.

  • File a report with the local police precinct. They will assign you a complaint number (Police Department Docket Number) that must be noted on the Inventory Database. (The date when the item was noted missing as well as the date of the last inventory should also be noted on the computer program).

  • Send a copy of the Police Report to the Special Commissioner of Investigation (SCI) for the New York City School District, 80 Maiden Lane (20th floor) New York, NY, Attn: Chief Investigator. The phone number of the SCI is (212) 510-1500.

  • Notify the Emergency Information Center (EIC) at (718) 935-3210. Address is: 335 Adams Street (28th Floor), Brooklyn, NY 11201.

  • Complete the DOE’s On-Line Occurrence Report form via the Online Occurrence Reporting System (OORS), which can be accessed from the website of the Office of School Intervention and Development (formerly School Safety and Planning) at http://erceo.nycenet.edu. To log on you must have a Username and ID. The information will be entered through the website and processed electronically. Exhibit C – Section 5.1 shows a facsimile of the 3-part Occurrence Report form.
  • Advise the School Safety Agent (SSA) at your site of the missing or stolen item(s). He/she will make a report of this incident to the NYPD – School Safety Division at 28-11 Queens Plaza North (9th Floor), Long Island City, NY 11101. Telephone: (718) 730-8500; Fax: (718) 730-8939.

    Note:

    Central supplemental funds are no longer available for the replacement of stolen or lost equipment.


3.7 How to Store and Secure Inventory Items


The principal, head of office or site supervisor is responsible for implementing the appropriate internal controls to ensure that all inventory including desk and lap top computers, are maintained in secured storage areas. The ISO is directly responsible for securing the storage areas.

To ensure compliance, the following guidelines should be used to establish policy and procedures.

  • Implement policies and procedures, which will prevent unauthorized visitors from entering a DOE site. You may wish to solicit the aid of the School Security Agent (SSA) assigned to your building to assist you in this endeavor. Adopted policy and procedures should ensure that:

    • effective visitor identification procedures are in place;

    • staff and students issue a friendly challenge to unidentified visitors; and

    • clear and obvious signs are displayed providing direction for all visitors.


  • Choose an individual who will have the responsibility of maintaining the secure storage areas. It is recommended that this individual be the ISO.
  • Storage areas should be chosen for maximum security. Consider the following:

  • Rooms with deadbolt locks, window grills, alarms, TV cameras and additional locking mechanisms. Keys and access codes should be changed often by selected personnel only.

  • Vaults or safes.

  • Chosen storage rooms should be away from items or structures that can be used as ladders to gain access to the selected room.

  • Establish and maintain an effective asset management system/inventory (regardless of whether the equipment is in use or not) and keep it up to date.

  • Record internal and external serial numbers as well as any other identifying marks. You can mark items using electronic pencils or invisible markers that are visible only under special lighting.

  • Establish sign out procedures and policies for expensive equipment that will be used by students or staff outside of the building and periodically question whether such items have been returned.

  • Portable equipment such as computers and other electronic equipment should be returned to limited access and secure storage areas during summer months and long holidays.

  • Newly delivered equipment, especially computer equipment, should be stored in a secure area if site preparation has not yet been completed.

  • Delivery of all new computers must be planned for well in advance of the end of the school term to ensure that they are not the subject of a potential theft.

  • Advise the security staff in advance of the delivery dates of computers to ensure appropriate security upon delivery.
  • Every piece of equipment should be labeled, engraved and/or indelibly marked or otherwise permanently tagged with the words "Property of the Department of Education."  Also included must be the site location (for example, 10K for Public School 10 in Brooklyn) and a serial number or other ID number to crosswalk to the inventory list.  In some special situations, a vendor may not be able to engrave a piece of equipment. If so, it is suggested that the site/Region/District/FMC purchase an engraving tool available at most hardware stores or acquire metallic identification tags.

    Note:  Equipment does NOT need to include fund source, cost, date or the other items required to be present on the full inventory list.

     

  • Attempt to “systematically deface” the equipment - this involves making the equipment virtually un-saleable, such as by writing or engraving the school’s name in a prominent place.

  • Expensive pieces of equipment (such as computers) should be permanently anchored/locked into place wherever feasible and cost effective.

  • Install alarms in the storage room.

  • Secure all mice and keyboards with cable ties.

  • Post notices to the effect that all equipment has been security marked.


    • 3.8 How to Distribute Equipment and Supplies


      It is suggested that distribution records and storage sites be reviewed periodically to make sure that all supplies and equipment are being fully utilized and that items are neither over stocked nor under stocked. To avoid deterioration and obsolescence, inventory should be stored so that the oldest items are used first. Attention should be paid to the shelf life of items such as stencils, chemicals, toners, etc.

      Sites may develop a distribution form to meet their individual requirements. The former Distribution Record Card, which is shown in the facsimile section (Facsimile 5 – Section 5.1), should be converted to a computer database for this purpose.


      3.9 How to Dispose of Obsolete Equipment/Materials Located in Schools and Administrative Offices


      REGARDING THE DISPOSITION OF OBSOLETE COMPUTER EQUIPMENT:

      If the computer equipment is classified into Category A (Section 3.9.3) you must follow the procedures detailed in section 3.10.

      If the computer equipment is classified into Category B (Section 3.9.3.1) you should follow the procedures contained herein (section 3.9). If no responses are received for your advertisement within the two (2) weeks of advertisement time, you must notify Dell Managed Services regarding disposal by calling the Help Desk at 718-935-5100.


      3.9.1 Why Should We Dispose of Obsolete Equipment/Materials?

      Effective use of school and office building space, and consideration for the safety of personnel and students, requires the disposal of obsolete equipment and materials. Removal of such equipment/materials may free up scarce space that can otherwise be used in a more efficient manner, such as for instructional purposes.

      3.9.2 What is the Major Consideration When Disposing of Obsolete Equipment/Materials?

      When faced with the decision of disposing of equipment when it is determined to be of no further use to the school or administrative office, fiscal responsibility for the expenditure of taxpayer dollars should be paramount. The objective is to achieve a return value if possible, or the most economical means of disposal.
      3.9.3 Who are the Personnel Responsible for Classifying and Disposing of Obsolete Equipment/Materials?

      Responsibility and authority to classify1 equipment that has no further use at a particular site, resides with the Site Supervisor. He/she may classify the equipment/materials into one of two (2) categories:

      1There may be occasions when the site supervisor is unable to properly “classify” a particular piece of equipment due to a lack of technical expertise (e.g., non-working piano). In this case, the site supervisor may secure specific technical assistance from a specialist in this area. When doing so, attempt to use a contracted vendor, thereby eliminating the need for bidding. If unable to do so, bidding is required.


      CATEGORY A
      Equipment in this category is either UNREPAIRABLE or NOT COST EFFECTIVE TO REPAIR. If in the professional opinion of the principal/site supervisor the equipment has been classified into this category, the item may be DISCARDED according to the procedures detailed below after attempting to sell the item to authorized salvage vendors.

      Note: Computer equipment classified into Category A must be disposed of using Dell Managed Services. See section 3.10 for additional details.
      3.9.3.1 Procedures for Disposal

      • Remove and/or scratch over all Department of Education identifying information on the equipment prior to disposal.

      • Offer the item(s) for sale by contacting (verbally or in writing) at least three (3) salvage vendors or other commercial organizations/businesses that may have use for the item. Request that the vendors respond in writing with their bid for the item within ten (10) business days. The Division of Contracts and Purchasing (DCP) will, on a periodic basis, advise schools and other sites throughout the NYC Department of Education of available contracted salvage vendors. Please contact DCP at (718) 935-3000 if you require details regarding the bidding process.

        If responses ARE received within 10 business days:

        When an organization or business submits responses, the site supervisor/ISO makes the award to the highest bidder. The awarded vendor issues a check payable to the Department of Education with the appropriate OTPS codes to be credited as designated by the central office or ROC. The site supervisor/ISO will forward the check to their respective ROC who will then forward it along with the Cash Receipts form to the Administrator of Accounting and Systems Development at the Division of Financial Operations (DFO).

        If responses are NOT received within 10 business days:

        You may DISCARD the item.

      • Arrange with the custodian to have the item removed to an area for regular Sanitation Department pickup.
      • Complete the “Disposition of Obsolete Equipment” Form (Exhibit D) and submit as required. You may access this form by:

        Navigating to the website of the Division of Financial Operations (DFO) at http://schools.nyc.gov/Offices/DFO/default.htm. Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Disposition of Obsolete Equipment.” Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).


      CATEGORY B

      Equipment/materials in this category is either TECHNOLOGICALLY and/or EDUCATIONALLY INAPPROPRIATE FOR THE SITE or A SAFETY HAZARD TO THE SITE. If in the professional opinion of the principal/site supervisor the equipment has been classified into this category, the item must be ADVERTISED (see note box 1 in Section 3.9.3.1) for a period of two (2) weeks on the DFO website according to the procedures detailed in Section 3.9.3.1.
      1The advertisement is automatically generated from the information placed on the >Disposition of Obsolete Equipment form (Exhibit D, Section 5.1) and posted to the DFO website*. You are therefore asked to be very specific when describing the item on the form.

      *You may access the advertisement section by going to the SOPM Inventory section:

      http://dfoapps.nycenet.edu/SOP/


      Click on “Advertised Items” lower RIGHT section of page to view listed equipment offered for transfer or sale.

      Any interested party (school, other DOE site, government entity, non-for-profit organization, salvage vendor) may view this advertisement.


      It is the responsibility of the site/school supervisor or his/her designee (usually the ISO) to respond to advertisements according to the following priorities:

      1Interested schools/sites within your district should be given first priority to advertised items. Instructional sites should be given priority over other sites.

      If no interest is expressed


      2You may then accept requests for the item(s) from other schools/sites within your region. Instructional sites should be given priority over other sites.
      If no interest is expressed


      3You may then accept requests for the item(s) from other schools/sites within the NYC public school system. Instructional sites should be given priority over other sites.

      If a school/site wants the item the site supervisor/ISO, should make provision for its delivery, or the requesting school/site should make provision for the pick-up of the item within five (5) business days after the closing date of the advertisement. It is the responsibility of the recipient to inspect the equipment. Both the donor and recipient sites must make certain that all inventory records are updated to reflect the change.


      If NO INTEREST is expressed by schools/sites within the NYC Department of Education within five (5) business days after the closing of the advertisement, the site supervisor/ISO must:

      1First offer the obsolete equipment/materials to any governmental entity - city, state or federal agency, office or department who responded to the advertisement. If a government entity wants this equipment, the site supervisor/ISO should make provision for the pick-up of the items within five (5) business days after the closing date of the advertisement. The donor school/site must make certain that all inventory records are updated to reflect the change.

      If no interest is expressed


      2By a governmental entity, you must then offer the item(s) for sale by contacting (verbally or in writing) at least three (3) salvage vendors or other commercial organizations/businesses that may have use for the item.

      Note: Some vendors/organizations may have responded to the advertisement.

      Request that the vendors respond in writing with their bid for the item within ten (10) business days. The Division of Contracts and Purchasing (DCP) will, on a periodic basis, advise schools and other sites throughout the NYC Department of Education of available contracted salvage vendors. Please contact DCP at (718) 935-3000 if you require details regarding the bidding process.
      When an organization or business submits responses, the site supervisor/ISO makes the award to the highest bidder. The awarded vendor issues a check payable to the Department of Education with the appropriate OTPS codes to be credited as designated by the central office or ROC. The site supervisor/ISO will forward the check to their respective ROC who will then forward it along with the Cash Receipts form to the Administrator of Accounting and Systems Development at the Division of Financial Operations (DFO).

      If no interest is expressed


      3From salvage vendors or other organizations or businesses, the item is deemed to have no value and may, at the discretion of the site supervisor/ISO, be disposed of by first offering it free of charge to non-profit community organizations who have responded to the advertisement. If such an organization wants the equipment, they must pick it up at their expense. Please make certain you have a receipt of this transaction for audit purposes.

      If no interest is expressed


      4From organizations/vendors and non-profit community organizations the site supervisor/ISO may dispose of the item(s) following the steps discussed in Section 3.9.3.1.

      3.9.4 What Notification is Required After Disposing the Obsolete Equipment/Materials?

      Regardless of the classification and how the item was disposed of, the site supervisor must notify the ROC, which oversees the business operations of that school/site of the disposition. He/she may do this by electronically completing the “Disposition of Obsolete Equipment” (Exhibit D, Section 5.1) form, which is forwarded to the ROC. You may access this form by:

      Navigating to the website of the Division of Financial Operations (DFO) at http://schools.nyc.gov/Offices/DFO/default.htm. Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Disposition of Obsolete Equipment.”
      Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).
      3.9.5 Adjusting Inventory Records After Disposal

      It is also the responsibility of the site supervisor to adjust inventory records to reflect the removal of the item from the site.

      3.9.6 Who May Not Receive Disposed Equipment/Materials

      To avoid any conflict of interest or even the appearance of impropriety, obsolete equipment/materials cannot be sold or given to Department of Education employees or their immediate families.


      3.10 How to Dispose of Obsolete Computer Equipment Located in Schools and Administrative Offices


      Disposal procedures for obsolete equipment (other than computers) are detailed in section 3.9. This present section deals ONLY with the disposal of Obsolete Computer Equipment, which fall into category A (see Section 3.9.3) only.

      Note: If classified into Category B, Section 3.9.3.1, you must follow procedures detailed in section 3.9. If your advertisement receives no responses, the procedures contained herein (section 3.10) are to be followed.


      “The Department of Education (DOE) is required by federal and state law to appropriately recycle computer equipment. Improper disposal can result in substantial monetary penalties.

      At the DOE, disposal and recycling may only be performed by Dell Managed Services (DMS), which is the DOE contracted vendor. Under this contract, Dell is responsible for disposal, recycling, and EPA compliance. In addition, Dell guarantees wiping any obsolete machine clean of any DOE data. Note that there is a fee for this service, which needs to be funded by each school.

      Detailed fee schedules and procedures are available on the DOE website at: http://managedservices.nycenet.edu - Click “Asset Recovery.”
      Once the school determines that the equipment is classified in Category A, the principal, site supervisor or his/her designee (ISO) must refer to the above website to determine the cost for the disposal of the obsolete equipment. The school must enter a FAMIS Purchase Order to Dell, who will then proceed with the disposal.”

      Once disposal is completed, DMS will certify that the equipment was disposed of in accordance with the contract and will update the DOE’s inventory to reflect these changes.

      This process insures that the DOE inventory is accurate and up-to-date, and per seat fees are not incurred for equipment the DOE no longer owns.

      Computer items (in Category A, Section 3.9.3) not purchased or received through Dell (e.g. PTA gift or purchase, donation from an outside organization) must be reported by the principal or his/her delegate - ISO to the Help Desk at (718) 935-5100. Once received, Help Desk personnel will contact DMS so that they may properly include these items into the inventory, which they maintain.

      Please note that under this process, the Inventory Specialty Officer’s (ISO’s) role as previously discussed in 3.9 is modified as follows:

      • May be asked by principal or site supervisor to refer to the above-referenced website to determine the cost for the disposal of obsolete computer equipment;

      • May be asked by the principal or site supervisor to prepare a FAMIS Purchase Order to DMS for disposal; and

      • Should notify the Help Desk at 718-935-5100 so DMS may update its inventory if the computer is being transferred to another site (under Category B) or is being discarded under Category A.


      3.11 How to Dispose of Obsolete Furniture


      Although the disposal of obsolete furniture does not fall under the provisions of this SOP chapter, schools and other sites should be familiar with the procedures to follow in the event disposal is necessary.

       

      1.     The principal is the individual responsible for determining whether furniture is no longer usable and therefore should be discarded.

       

      2.    Before discarding, the principal/site supervisor should attempt the following if he/she feels the items can be used by another school, site, other governmental organization, or sold to a salvage vendor:

       

      a.    Advertise via DFO to ascertain if another school or site would like the items transferred to them.

       

      b.    Advertise to other governmental organizations if no interest is expressed by another school or site.

       

      c.    Offer the items for sale to a contracted salvage vendor if no interest is expressed by other governmental organizations.

       

      d.   Offer the items free of charge to non-profit community organizations.

       

      3.    Regardless of how the items are removed, a receipt of the transaction should be retained.  If the items are transferred to another entity, moving expenses should be paid by the receiver of the items.

      4.    If the principal is unable to discard the furniture as outlined above, he or she should:

       

      Contact the custodian of the school/site to ask if he/she is agreeable to removing such obsolete furniture.u  If he/she is, it is recommended that a letter be forwarded to the custodian by the principal/site supervisor advising him/her that “X” number of chairs, desks, etc. are to be removed.  A copy of this communication should be retained by both the principal and custodian for possible future needs.  The custodian will then remove the furniture from the premises and place it into the site’s dumpster.  If the dumpster cannot accommodate the amount of furniture being discarded, the custodian should arrange with the Department of Sanitation for “bulk” removal on specified days.

       

      u Payment may have to be made to the custodian via a space sheet for furniture movement if he/she is unwilling to do this per the principal’s/site supervisor’s request.

       



      3.12 Additional Notes


      Note 1:
      If the original cost of a piece of obsolete equipment was over $35,000 at the time of purchase it is considered part of the Department of Education's fixed asset inventory. The site supervisor must notify the Division of School Facilities (DSF) for appropriate disposition instructions. The DSF must also be notified if the item to be disposed of is a motor vehicle.

      Note 2:
      Circumstances may require that sites pay to have an obsolete item removed. For example, if an obsolete printing press weighing hundreds of pounds has to be removed by a commercial firm, it is an acceptable expense for the site to pay for its removal via the most cost-effective means. If this expense is expected to exceed $250, standard bidding regulations apply.
      Note 3:
      Through the FAMIS Portal (https://dfoforms.nycenet.edu/FamisPortal/login.aspx) schools and other DOE sites may electronically forward the following two (2) forms to a central database for storage and review by ISC personnel to ensure compliance with this SOP:

      Exhibit A (Section 5.1) – “Annual Inventory Statement”
      This form must be filed no later than 30 days after the physical inventory has been taken (must be completed no later than April 15th). Upon entry into the FAMIS Portal, Location Information will be automatically generated. Anything not populated should be completed by the user. Keep a copy for your records.

      Exhibit D (Section 5.1) – “Disposition of Obsolete Equipment”
      This form must be filed regardless of item classification or disposition. Fields in Section I will be automatically generated upon entry into the FAMIS Portal. Anything not included should be inserted by the user. All other sections of this form are self-explanatory. Keep a copy for your records.

      The FAMIS Portal has a “Search” feature, which will enable a school or other site, as well as a ISC to review all data submitted on both forms. This data will be kept in the system for one year. After that, it will be removed. It is therefore suggested that hardcopies of these forms be retained at the site for possible future audit.
      4. INTERNAL CONTROLS AND/OR DELEGATION OF RESPONSIBILITIES




      4.1 Delegation


      It is recommended that Superintendents, ROC Directors and Heads of Central Offices designate one person to coordinate all inventory activities under his/her jurisdiction. This individual will be the Inventory Specialty Officer (ISO). This position should be rotated every few years as a means of internal control.


      4.2 Internal Controls


      Site administrators should periodically spot-check inventory records to see if appropriate inventory control procedures are being observed at each site. Differences between records and physical counts should be investigated and reported to management.

      Inventory storage rooms should be under the supervision of the ISO.

      Inventory storage facilities and procedures should be examined periodically to insure that materials and/or equipment are not being under utilized. Levels of stocked items should be established to preclude overstocking or under stocking.

      All inventory items should be safeguarded as they are valuable assets of the school or site.

      The ordering, receipt and inventory of equipment, textbooks, computer software and educational and administrative supplies stored in large quantities--i.e., items to be inventoried—should be performed by different individuals to help prevent fraud and theft.
      5. FORMS AND SAMPLES




      5.1 Table of Exhibits


      In this section you will find facsimiles of the standard Division of Contracts and Purchasing (DCP) forms that will help you with your inventory. You will also find samples of certain letters and additional forms that you may copy or download from the DFO website located at  http://schools.nyc.gov/Offices/DFO/default.htm or adapt as your needs require.

      Exhibit Description
      A Annual Inventory Statement
      B Request for Off-Site Equipment Use
      C DOE Occurrence Report (Parts 1, 2 and 3)
      D Disposition of Obsolete Equipment
      D-1 BuyBack Book Program Form
        The following facsimiles of previously used cards/lists are shown for reference purposes only. When setting up a Computer Inventory Database you should, at the very minimum, use the fields shown on these cards/lists.
      Facsimile 1 Annual Equipment Inventory List
      Facsimile 2 Equipment Inventory Card
      Facsimile 3 Supplies Inventory Card
      Facsimile 4 Textbox Inventory Card
      Facsimile 5 Distribution Record Card
      EXHIBIT A–Annual Inventory Statement

      Please see Note 3 in Section 3.13 for additional information.


      Navigating to the website of the Division of Financial Operations (DFO) at http://schools.nyc.gov/Offices/DFO/default.htm. Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Annual Inventory Statement.”
      Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).

      EXHIBIT B - Request for Off-Site Equipment Use


      EXHIBIT C- DOE Occurence Report - Part 1


      Note: The DOE Occurrence Report form consists of three parts. The “thumbnail” images shown here are for reference purposes only. This form is filed on-line by visiting the website of the Office of School Intervention and Development (School Safety and Planning) at: http://erceo.nycenet.edu.


      EXHIBIT C- DOE Occurence Report - Part 2


      EXHIBIT C- DOE Occurence Report - Part 3


      EXHIBIT D - Disposition of Obsolete Equipment

      Please see Note 3 in Section 3.13 for additional information.


      Navigating to the website of the Division of Financial Operations (DFO) at http://schools.nyc.gov/Offices/DFO/default.htm. Once there, click on “FAMIS Portal” (right side) >Enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Disposition of Obsolete Equipment.”
      Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).

      EXHIBIT D-1 - Book BuyBack Program Form


      You may access this form by clicking on the following link:

      https://dfoforms.nycenet.edu/FamisPortal/login.aspx?Sessiontoken=aizc0y45p35j40efaphdix55

      Once there, enter your Password and ID > Go to “Miscellaneous” > “Inventory” >Click on “Book BuyBack Program.”
      Note: Authorization to enter FAMIS and secure inventory information is restricted to select personnel only. In schools, it would be the principal or his/her assistant principal(s).

      Facsimiles of Previously Used Cards/Lists


      The following facsimiles of previously used cards/lists are shown for reference purposes only. When setting up a Computer Inventory Database you should, at the very minimum, use the “fields’ shown on these cards/lists.

      Facsimile 1 - Annual Equipment Inventory List


      Facsimile 2 - Equipment Inventory Card


      Facsimile 3 - Supplies Inventory Card


      Facsimile 4 - Textboox Inventory Card



      Facsimile 5 - Distribution Record Card