Question: For unorganized student body, if equipment is bought and paid by student body or PTA board, should the equipment be under district inventory? What if the student body and PTA split the cost?
Response: The answer to your question really depends on district board policy related to equipment. The law does state that inventory is mandatory for items over a certain value, but the law does NOT dictate who maintains that inventory. Many districts prohibit student organizations from owning equipment or long-term assets of any kind, which is why district policy must be reviewed and understood.
Equipment is generally defined as moveable personal property of a permanent nature (other than land and buildings), with a useful life of more than one year and a cost of more than $500. Examples include machines, furniture, vehicles and furnishings that are not integral parts of a building or a building service system. Some equipment requires periodic maintenance and repairs. When purchasing equipment the ASB needs to consider insurance and its exposure to various risks such as vandalism and theft, and should understand inventory listing requirements. That's why it is critical that district board policy be adopted in this area so ASB does have guidance and parameters of what it can and cannot purchase. Equipment purchased by an ASB organization is the property of ASB. The student club may retain ownership (if allowed by the district), or may donate the equipment to the district (if the district is willing to accept the equipment). Whoever retains the ownership, ASB or the district, is responsible for maintaining the equipment inventory.
The district should have in place specific policies and procedures related to inventory practices and they must be followed by the district and ASB. Per Education Code section 35168, the following information must be recorded:
Name and description of the property
Name of the titleholder (i.e. ASB or district)
Serial number or other identification number
Cost of the property
Acquisition date
Location of use
All equipment must be clearly marked and identified. An annual inventory is required and will be reviewed by the district's independent auditors.
All of the above has to do with equipment purchased with district or ASB funds. If the PTA were to purchase equipment, though, they would have to maintain their own equipment inventory unless they donate the equipment, and it is accepted, by the district. Remember the ASB is part of the school district, but PTA is a separate entity so their records cannot be combined.
2/17/10
