In the midst of back-to-school season, a critical issue has come to light in Philadelphia's School District: the district's poor accountability of capital assets. For the past two years, the city controller's office has cited the district for its lack of transparency regarding assets worth over $5,000 that have a useful life of more than one year.
The district holds an impressive $2.8 billion in capital assets across its schools, according to the most recent Annual Financial Comprehensive Report. However, the controller's office found that over 60% of the assets it tested were not properly recorded and couldn't be located. The report listed numerous items by school building, including printers, computers, and even a lunchroom table.
But before we dive into the details, let's take a step back. As former school leaders in New York state public school districts, one of us was a superintendent from 2008-2019 and the other was a regional school district controller from 2013-2024. In these roles, we worked together to build and test policies and procedures for purchasing, inventorying, and auditing school equipment.
We've seen firsthand the importance of proper asset management. Federal regulations require districts receiving federal funds to maintain control over assets, track purchases, conduct regular inventory, and maintain documentation related to purchases and disposals. And it's not just federal regulations; Pennsylvania's Department of Labor and Industry laws and regulations also require accurate inventory records and periodic updates of asset locations.
In the post-COVID-19 pandemic era, school districts have received significant funding to upgrade facilities and support academic recovery. Philadelphia public schools alone received $1.8 billion in federal stimulus funds between 2020 and 2024. The spike in purchases presented challenges when it came to inventorying assets, as a lot of dollars had to be spent quickly within specified grant periods.
So, what's the solution? In our experience, consistent systems, clear policies, and focused accountability can go a long way. Here are some steps that every pre-K to 12 public school district in Pennsylvania and across the country can take:
1. Set up structures that allow the purchasing department and receiving departments to work together on appropriately tagging all new equipment.
2. Expand electronic inventory systems like barcodes to allow for timely updates to capital assets and noncapital inventories.
3. Require each department to certify their inventory each year and identify any missing assets.
4. Implement robust training for all school personnel on how to purchase and track assets and inventory items.
By implementing these measures, districts can ensure that their vision of preparing students to imagine and realize any future they desire becomes a reality. After all, strong asset management systems are essential to achieving this goal.
In conclusion, the Philadelphia School District's poor accountability of capital assets is not just an isolated issue; it's a systemic problem that requires a comprehensive solution. By implementing consistent systems, clear policies, and focused accountability, districts can ensure that their students have access to the equipment they need to learn. And as educators, we must prioritize asset management to achieve our vision of preparing students for success.
Written by: Jony Spark | The Citizen Edition
“Genius at work.”