7450 - INVENTORY PROCEDURE

Whitmore Lake Public Schools

Administrative Guidelines

7450 - INVENTORY PROCEDURE

General Procedure for Consumable Inventory

In order for the District to meet requirements for preparing GAAP (Generally Accepted Accounting Procedures) basic financial statements, it is necessary to conduct an annual inventory of consumable supplies and materials on hand at fiscal year end, June 30th.

The Physical Inventory Area Supervisor for each building/department will be the principal or Food Service Supervisor) as appropriate.

Inventory sheets will be provided by the Food Service's office and will include:

Date

Building/Department

Item Description

Quantity

Unit Cost

Extended Cost

Grand Total Cost

Responsibilities of Physical Inventory Area Supervisor

		1.	To supervise the inventory for a specific location.
		2.	To ensure that qualified stock counters and sheet writers are available for the inventory period.
		3.	To serve as the contact with Business office during the inventory.

Action to be Taken (Pre-Inventory Planning)

		1.	Determine that people involved with inventory are qualified.
			Counters - Employees should be familiar with the stock and with the part/supply numbering system. If possible, they should have prior inventory experience.
		2.	Arrange so that areas subject to inventory are clean and that stock is arranged in an orderly and accessible manner. All scrap should be removed to a separate section and clearly identified.
		3.	Issue instructions that operations, when possible, will cease and no stock will be moved during the inventory recording period. In areas where movement of inventory is anticipated, schedule counting of items to be as least disruptive as possible. Consequently, count high moving items last and slow moving items first. Areas where work must be continuous should be noted to the inventory controller, and records kept of counted inventory used until verified and released.

	D.	Exceptions to above procedures
		Buildings and Grounds Department
		Inventory conducted by building location.
	E.	Follow-through procedure
		Upon completion of the inventory process at the Building/Department level, return all consumable inventory sheets to the Business office. After verification by the Business office, the District Consumable Inventory Fiscal Year End Report will be compiled and a request sent to the State Auditors for observation and verification of the inventory. Each Building/Department will be apprised of this schedule and upon verification by the auditors, the inventory process will be complete for that fiscal year.
	F.	New Equipment Inventory Control Procedures
		All equipment with a value of $5,000 or more or that has a life of over five (5) years, is to be given an inventory number and recorded on the New Equipment Inventory listing located in the Business office.

		1.	Remove equipment from the shipping container. Inspect it to be sure all parts have been received and are in good condition.
		2.	After inspection, an inventory ID Number should be attached. These numbers are to be issued in sequence, by the Business. The sticker should be attached as close as possible to the serial number, without covering any information pertinent to the repair or replacement of the equipment.
		3.	All information pertaining to the equipment, i.e., item, serial number, vendor, date of purchase, cost, building located in, room located in, maintenance agreement, etc. should be recorded on the new inventory listing.
		4.	All information should be submitted to the Business Office for placement in the "New Equipment" file.

Textbook Inventory Procedures

		1.	All nonconsumable textbooks, teachers editions of textbooks, and reference books that are not controlled by the library, are to be stamped and numbered.
		2.	Hardback Textbooks and Teacher's Editions

			a.	Each book is stamped with the school or District name on the inside front cover and on any page in the middle of the book.
			b.	Numbering is done on the inside front cover and contains the year purchased and the book number. (Example: 96-0, 96-2, 96-3) Each book title will receive its own set of sequenced numbers.