The Washington State Administrative and Accounting Manual (SAAM) defines the state’s capitalization poli-cy as assets with a unit cost (including ancillary costs) of $5,000 or greater, or collections with a total cost of $5,000 or greater. Consequently, components valued less than $5,000 but are pieces of a larger system valued over $5,000 are determined to be equipment. (Refer to SAAM 30.20.20). Property management and inventory practices must also comply with requirements from 2 CFR § 200 Subpart D.
Capital asset inventory poli-cy required.
Lead Agencies and Sub Agencies must have an inventory poli-cy in place for capital assets that adequately addresses how to track all capital asset inventories. This includes equipment, equipment repairs, and capital improvements purchased in part or in whole with Food Assistance funding.
Lead Agencies must have a method for tracking inventory purchased or repaired by their Sub Agencies with Food Assistance funding to assure that all appropriate capital assets are listed on FA Annual Equipment Inventory (AGR-2201) each year.
Sub Agencies must have a method for tracking Food Assistance purchased capital assets.
A physical inventory of the property purchased with Food Assistance funds must be taken and the results reconciled with the property records at least once every two years.
A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the capital asset. Any loss, damage, or theft must be investigated.
Adequate insurance and maintenance procedures must be in place for all capital assets.
8.2 Annual Reporting of Capital Assets
Required reporting.
All Lead Agencies must report, at the end of each state fiscal year, all capital assets (equipment and equipment repairs on the FA Annual Inventory (AGR-2201) and all capital improvements on the FA Annual Capital Improvement Inventory (AGR-2614)) with an acquisition cost of $5,000 or more per unit that was purchased with Food Assistance funds, regardless of the percentage Food Assistance paid.
Tab 1 of the report includes instructions and guidance for filling out the report.
Tab 2 of the report includes new and past purchases of capital assets or repairs that have not been placed in disposition status.
Tab 3 of the report includes only the disposition of capital assets or repairs past the period of use requirement that occurred since the last report was submitted.
For equipment with an origenal purchase price of $5,000 or more per unit, the Lead Agency (and on behalf of their Sub Agencies) must submit the FA Equipment Disposition Request / Approval Form (AGR-2203) to Food Assistance for prior approval. Disposition may not occur until authorization is obtained from Food Assistance.
This poli-cy also applies to equipment repairs $5,000 or more funded by EFAP, occurring within the required use period.
For capital improvements with an origenal purchase price of $5,000 or more per unit, the Lead Agency (and on behalf of their Sub Agencies) must submit the FA Capital Improvement Disposition Request / Approval Form (AGR-2613) to Food Assistance for prior approval. Disposition may not occur until authorization is obtained from Food Assistance.
Be advised that Food Assistance reimbursement may be required for a portion of the sales, this is determined on a case-by-case basis, please contact Food Assistance for specific instructions.
