Policy 3801 – Inventory

The District establishes this policy to safeguard assets, enhance accountability, and provide accurate and uniform financial reporting in compliance with generally accepted accounting principles (GAAP), the Governmental Accounting Standards Board (GASB) Statements, the State of Wisconsin Uniform Financial Accounting Requirements (WUFAR), and U.S. Federal Government Uniform Grant Guidance.

Inventories are defined as furniture and equipment that do not meet the definition of a capital asset (item under $10,000 and has a useful life of under one year) or consist of expendable supplies held for consumption that are material to the financial statements. Such records may be maintained for equipment or supplies considered to be theft-sensitive assets, such as, but not limited to, handheld devices, tablets, computers, smart boards, other technology equipment, other equipment, library books, textbooks, food service supplies, warehouse supplies, etc.

The Chief Financial Officer and the Office of Finance shall have the authority to establish, modify, and delegate internal controls and procedures over inventories. District inventories are maintained at the department level.

For financial statement purposes, any inventory significant to the financial statements is determined by the Chief Financial Officer and the Office of Finance. The Chief Financial Officer and the Office of Finance have the authority to determine the methodology used to record the change in inventory based on generally accepted accounting principles and in accordance with governmental accounting standards.

Federal and state funds may be used to purchase materials and equipment to meet the needs of eligible private school students as allowed by funding sources. It is important to remember that although materials and equipment may be used by the private school, the Local Education Agency (LEA) purchasing the items retains title and must continue to account for the items in its inventory management system.

The District shall require all private schools to implement adequate procedures and internal controls to account for the location, custody, and security of materials and equipment purchased with federal funds for private school use. These procedures must include the proper labeling of materials and equipment purchased with federal funds, and policies and procedures to ensure that private school officials do not use these materials and equipment for non-secular purposes.

A barcode system or other similar inventory tagging system, and the identifying words “Property of Kenosha Unified School District,” shall be used for technology, textbooks, and library material inventory.

Inventories will be updated annually.

Obsolete inventory items no longer needed by the District are to be disposed of by making them available on a reasonable basis to any non-profit organization in quantity lots or by periodically holding public sales. Public notice will be given concerning details for the disposition of these items.

Inventoried materials no longer needed by the District may be disposed of by recycling, incinerating, sale, or scrapping. Requests from organizations or individuals for any of such materials will be considered, with first priority being given to non-profit organizations.

Any sale of obsolete inventory will be deposited into the fund that purchased the item(s). DPI allows the sale of furniture and equipment in fund 10, 27, 50, or 80.

Professional appraisers may be used to determine the value of inventoried items, if needed.

LEGAL REF.:

  • Wisconsin Statutes
    • Sections 120.10(12) [Annual meeting power; sale of district property]
    • 120.12(1) [Board duty; care, control, and management of district property]

CROSS REF.:

ADMINISTRATIVE REGULATIONS: None

AFFIRMED: June 24, 2025