Following a question regarding how to account for personal property for a non-public considering the changes in HB 110, we asked AOS and ODE for guidance. Below is the answer received. This was also addressed in the Winter Finance Workshop.
AOS and ODE concur that districts need to do something with the materials and equipment. In the spirit of the law, it is suggested that all materials and equipment that are technically the property of the public school district be transferred (by way of board resolution) to the nonpublic school. Alternatively, the school district could remain the owner of the property and continue to loan for nonpublic use. Or, the school district could remain the owner of the property and use it in the public district just like it is handled in a closure.
From the 2017 ODE FAQs:
- Are the materials and equipment purchased with the August payment for the non-religious nonpublic school property of the public school district?
Items purchased prior to the effective date of House Bill 49, Sept. 29, 2017, are property of the public school district. Each school district shall label materials, equipment, computer hardware or software, textbooks, and digital texts purchased or leased for loan to a nonpublic school. A district need not label materials, equipment, computer hardware or software, textbooks, or digital texts that the district determines are consumable in nature or have a value of less than $200.
ODE believes the area coordinators are encouraging the property transfer to release the public district from any liability and continued work with the auxiliary services for schools receiving their funding directly.
Also, if any of these assets would happen to have been paid for with Federal funds (AOS thinks this is unlikely, but fyi just in case), school district would need to comply with the Federal rules for disposition of those assets.