Capital Expenses

Medium

The updated equipment and construction reimbursement review process is effective June 5, 2023. Preapproval forms are required for all projects submitted for reimbursement after June 20, 2023.

Capital Expenditures Guidance

Recipients of federal funds must get prior written approval before spending funds on capital expenditures. (2 CFR § 200.439(b)(1)). Capital expenditures include the funds an entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Please note the requirements for PURCHASING fixed assets, such as buildings, vehicles, equipment, or land differ from requirements for CONSTRUCTION, REMODELING, and REPAIR.

Capital Expenditures Purchases

  • The standard threshold for getting prior approval for a capital expenditure PURCHASE is $5,000 on a single item. Capital expenditures exceeding $5,000 must be justified as COVID-related and receive written prior approval.
    • Capital Expenses (Non-Construction) Prior Approval for Use of Federal Funding (preapproval request form) – SFN 61974 (Updated)
  • By signing a request for pre-approval for funds the grantee agrees to abide by the following regulations:

Capital Expenditures Construction, Remodeling, and Repairs

Fact Sheet #66 – General Overview

  • The standard threshold for getting prior approval for a capital expenditure CONSTRUCTION, REMODELING, and per project. Capital expenditures projects exceeding $2,000 must be justified as COVID-related and receive written prior approval.
    • Capital Construction - Prior Approval for Use of Federal Funding (preapproval request form) – SFN 62336
  • Districts will also need to submit SFN 52304 (School Construction Approval Request) for any requests in excess of $150,000 to Adam Tescher.
  • For projects over $350,000, SFN 52813 (Facility Plan) is also required.
  • By signing a request for pre-approval for funds the grantee agrees to abide by the capital expenditure regulations for purchases in addition to the following requirements:

Information on Construction Designs

School districts to use ESSER funding for construction must request prior approval by submitting the “Capital Expenses – Prior Approval”. Before construction is advertised or placed on the market for bidding, the grantee shall get approval of the final working drawings and specifications using the guide below:

  • Final Working Drawings:

    • Architectural and engineering drawings which consist of acceptable reproducible. These drawings provide information about various aspects of the construction of the building including architectural (floor plans, interior and exterior elevations, and sections), ornamental, structural, mechanical, electrical, and air-conditional details, as well as site and landscaping plans. This is probably the most important class of records since they provide not only detailed instructions for the erection of the building but also present a comprehensive and detailed picture of its design.

  • Project Specifications:

    • Guides for individual construction projects which outline material requirements and explain the materials and manufactured items depicted or related drawings.

Training

Additional Support Resources

Specific questions in regard to reimbursements and preapproval can be directed to Anne Butterworth, Department of Public Instruction ESSER Program Manager, at (701) 328-4051.