Nutrition Services Division Management Bulletin
To: Commodity Supplemental Food Program Local Agencies
Attention: Commodity Supplemental Food Program Administrator
Date: May 2012
Subject: Requirements for Capital Expenditures
|Reference: Title 7, Code of Federal Regulations, Section 247.25 and Part 3019 – Uniform Administrative Grants and Agreements with Institutions of Higher Education, Hospitals, and Non-profit Organizations.|
This Management Bulletin (MB) provides clarification on the requirements for requesting approval of capital expenditures for the Commodity Supplemental Food Program (CSFP).
A capital expenditure is defined as any purchase of facilities or equipment with a per unit cost of at least $5,000. These types of purchases are allowable under Title 7, Code of Federal Regulations Section 247.25; however, these purchases require prior approval from both the California Department of Education (CDE) and the U.S. Department of Agriculture (USDA) Food and Nutrition Service (FNS) before the purchase can be made.
CSFP local agencies requesting a capital expenditure must submit a written request to the CDE that includes the following:
- A general description of the equipment
- An explanation of how this equipment will be used
- A breakdown outlining the percent of time the equipment will be used for the CSFP in comparison to other programs offered by the local agency
- Copies of all bid documents and costs associated with the purchase
If the request is approved by the CDE, we will forward the request to the USDA FNS for final approval. Upon approval by the USDA FNS, the CDE will send a written notice to the local agency stating that the request for the capital expenditure has been approved and can now be purchased.
Please Note: Due to the lengthy approval process, we recommend that you secure bids and quotes that are valid for 90 days.
CSFP local agencies must keep records for all purchases (including capital expenditures) that were made using federal funds. The following outlines the record keeping requirements for these purchases:
- Description of the property including name of the equipment
- Serial or ID number of the property
- Original source for the purchase
- Date acquired
- Percent use for CSFP
- Location of the equipment
- Use and condition
- Depreciation date
During CSFP local agency reviews, the CDE may request and review all purchase records.
If you have any questions regarding this MB, please contact Irene Boubalos, CSFP Coordinator, by phone at 916-323-7181 or by e-mail at firstname.lastname@example.org.