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Capital Equipment Purchases and Approval Procedures

If a School Food Authority plans to purchase Capital Equipment using Food Service (Fund 21) funds, Capital Equipment approval purchases must be followed: 

Capital Equipment is defined by Federal regulations as tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the SFA/LEA for financial statement purposes, or $5,000.00. 

Capital Equipment Approval Procedures: 

Step 1: Complete the Equipment Purchase Approval Tree to determine if the equipment purchase is allowable and if the equipment is on the Prior Approved List. 

  • If the equipment is allowable and on the prior approved list, keep the Approval Tree for your records. The SFA may purchase the equipment and does not need further approval. 

Step 2: If the equipment is allowable but it is not on the Prior Approved List, CDE must approve the equipment before it can be purchased by the SFA. Complete the Capital Equipment Approval Form for CDE approval. 

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