State Agency Prior Approval Process for School Food Authority Equipment Purchases

Last Modified: 04/02/2014
Friday, March 28, 2014

Government-wide requirements found in the Office of Management and Budget (OMB) guidance cited at 2 CFR Part 225 (Cost Principles for State, Local, and Indian Tribal Governments), Appendix B, section 15 (Equipment and other capital expenditures) require a grantee or subgrantee to obtain the prior written approval of its awarding agency before incurring the cost of a capital expenditure. Both the OMB guidance and Generally Accepted Accounting Principles identify equipment as a capital asset. For purposes of this Federal prior approval requirement, the OMB guidance and Department of Agriculture (USDA) regulations define as “equipment” any item of non-expendable personal property with a useful life of a year or longer and an acquisition cost which equals or exceeds the Federal per-unit capitalization threshold of $5,000 or a lower threshold set by State or local level regulations.

Document #: 
SP31-2014