Can a piece of equipment cost $2,000 and be allowable under the grant?
A10: The USDA defines equipment as an article of non-tangible personal property, with a useful life of more than one year and a per unit acquisition cost of $5,000 or greater. A school district, with school board approval, can establish a lower capitalization threshold, thereby allowing the per unit acquisition cost to be lower than $5,000. Unless your district has established a capitalization threshold of $2,000, the piece of equipment would not be allowable under the grant. However, the cost of the equipment should include tax, shipping and handling, and installation. If by adding in these costs, the equipments total purchase price equals or exceeds $5,000, it would be allowable. Q11: Over the past five years we have had issues with power failures due to weather and forest fires for multiple days at a time. This has caused loss of some frozen and refrigerated product. We are wondering if purchasing a generator would be allowable to ensure the safety of our food supply. A11: The grant
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- Can a piece of equipment cost $2,000 and be allowable under the grant?
