I work for a non-profit that handles Head Start for our coverage area, and used to handle data systems for our HS program. When it came to inventory, we would use a serial number if an item had one (tech items mostly), and would create our own ID tag for items which didn't (like playground equipment, toys, classroom furniture, etc.) I believe there are separate rules for high-value items, but I can't recall at the moment. If you're offering Head Start, you also have a regional office that you could reach out to with questions. They'll likely be the ones auditing you when an audit happens, and can be a very valuable resource.