Agenda - Council - 09/13/2022 - Laserfiche WebLink

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intangible assets used in operations having a useful life of more than one year which are capitalized in accordance with [Generally Accepted Accounting Principles] ." Capital assets include lands, facilities, equipment, and intellectual property. Equipment means "tangible personal property (including information technology systems) having a useful life of more than one year and a per -unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non -Federal entity for financial statement purposes, or $5,000." Supplies, which means all tangible personal property other than those included as "equipment," are not considered capital expenditures. Recipients may also use SLFRF funds for pre -project development costs that are tied to or reasonably expected to lead to an eligible capital expenditure. For example, pre -project costs associated with planning and engineering for an eligible project are considered an eligible use of funds. c. DISTINGUISHING SUBRECIPIENTS VERSUS BENEFICIARIES Under the interim final rule, state, local, and Tribal governments that receive a federal award directly from a federal awarding agency, such as Treasury, are designated as "recipients," and state, local, and Tribal governments are authorized to transfer funds to other entities, including private entities like nonprofits. The interim final rule stated that, "[a] transferee receiving a transfer from a recipient under sections 602(c)(3) and 603(c)(3) will be a subrecipient. Subrecipients are entities that receive a subaward from a recipient to carry out a program or project on behalf of the recipient with the recipient's Federal award funding." For funds transferred to a subrecipient, the interim final rule noted that "[r] ecipients continue to be responsible for monitoring and overseeing the subrecipient's use of SLFRF funds 208