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Expired Supplies Worth?

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    Posted by: Kelly Bowe, Trinity Hospital Twin City

    Date: June 22, 2015 12:00 PM

    Our purchasing department donates any expired supplies to our local teaching school to use for teaching medical assisting or nursing students.
    Since the supplies are expired, I wouldn’t think the net worth would be the same as up- to -date supplies. Is there a formula to follow for expired supplies or how do you estimate the worth?

    We also donated a large amount of supplies for a local church mission to take to a foreign country to provide health care. I thought it would count under E3 In-Kind Donations but was unsure since the bullet point read: Equipment and medical supplies (includes national and international donations with the greatest proportion of donations being local). I was unsure about the “greatest proportion of donations being local”?? That particular donation was all sent overseas but we donate a large amount of supplies throughout the year to local agencies as well.
    Any advice you have would help
    Thank You

    Response: Leslie Hughan, MedStar Harbor
    Date: June 25, 2015 2:06 PM
    Hi Kelly,

    It’s my understanding that you would capture the current value of the item. For items that are fully depreciated when donated, the items themselves have no benefit value. However, if your organization handles the delivery to the donation site (e.g. shipping expenses, mileage for transport, etc.) you can capture those costs. If the items are depreciated and the receiving organization(s) handle the pick-up, there is nothing monetary that should be captured, but it can still help paint the picture of your organization’ good works in your annual report.

    Response: Nicole Schossow, Winona Health

    Date: June 26, 2015 10:00 AM

    Our materials department does the same thing with our out of date or unused supplies. They spoke with the Accounting department ages ago and came up with an average depreciation percentage. When they inventory the donations, they total the amount for the original purchase of the supplies and multiply it by the depreciation percentage. Only the depreciation amount is tracked.

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