Would the cost of expanding classroom space to another building be considered repairs or an addition?
A. The cost of expanding classroom space to another building would be considered an addition and not a repair. The purchase of a school building or adding classroom space to a new or existing school building is considered a capital item. The cost would be recorded as an asset on the school s balance sheet and depreciated over the life of the asset. The yearly depreciation expense would be considered an allowable cost for the calculation of the certified actual cost per student, but deprecation expense is outside the calculation of the cost category percentages. The depreciation expense associated with the cost a building and/or addition to a building should be charged to Debt Service Fund Depreciation of Buildings account #40-701-510-911. Please refer to Exhibit C, page 19, and line 314.
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