State Agency Prior Approval Process for SFA Equipment Purchases


April 3, 2014 – Government-wide requirements in an Office of Management and Budget (OMB) guidance require a grantee or subgrantee to obtain the prior written approval of its awarding agency before incurring the cost of a capital expenditure. 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. USDA recognizes that the prior approval requirement can be administratively burdensome. As such, they havereleased a memorandum extending some flexibility of its implementation.

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