The OMB guidance and United States Department of Agriculture (USDA) regulations at 2 CFR 200.313 define “equipment” as tangible personal property (including information technology systems) having a useful life of one year or longer and a per-unit acquisition cost that equals or exceeds the lesser capitalization level established for financial statement purposes, $5,000, or a lower threshold set by local level regulations.

During administrative reviews required by 7 CFR Parts 210, 225, 226 and procurement audits as required by 2 CFR 200.501, Oklahoma Human Services will review equipment purchases, ensuring purchases were made based on either the approved equipment list or the Oklahoma Human Services prior approval process. If equipment purchase(s) are deemed unallowable during any audit or review process, we may disallow the purchase(s) and require the School Food Authority (SFA) to replenish the non-profit school food account as appropriate.

When procuring goods and services for the Child Nutrition Programs, an SFA must determine whether they must use an informal or formal procurement method. It is important to understand and then identify which method best meets the needs of your individual food service operation.

Costs associated with remediation or repair to the facility (i.e. plumbing, heating, air conditioning, construction, etc) that would add to the permanent value of the facility are unallowable. These costs should be borne by the SFA’s general fund.

All equipment purchased must be deemed necessary and reasonable for proper and efficient performance and administration of the Child Nutrition Programs (CNP) prior to purchasing.

Equipment Purchase from Pre-Approved List

If an SFA seeks to purchase equipment on this pre-approved list using Child Nutrition Program Federal reimbursement funds to purchase, the SFA must complete and maintain on file the Pre-Approved Equipment & Capital Expenditure Attestation form and must follow all applicable procurement regulations.

Equipment Purchase NOT on Pre-Approved List

If an SFA/ SO seeks to purchase equipment not on this pre-approved list using Child Nutrition Program Federal reimbursement funds to purchase, the SFA/ SO must seek approval from Oklahoma Human Services  Nutrition Programs prior to purchase by completing and emailing the Equipment & Capital Expenditure Pre-Approval Request Form to AFS.School.Nutrition.Programs@okdhs.org and must follow all applicable procurement regulations.

Equipment Disposal

Disposal of the equipment purchased with Federal funds shall be complaint with 2 CFR 200.313. Please contact Oklahoma Human Services for further instruction.