Ministry Policy Site

Equipment Allowances

Issued May 9, 1994
Revision Date May 31, 1995

Current policy

School districts will be provided with capital funding to purchase essential furniture and equipment for approved new or renovated facilities.

Unit rates for new building construction include funding for fixed equipment items that should be included as part of the building, including bleachers, lockers, basketball backstops, wall bars, millwork, and fixed cupboards and shelves. The equipment allowances for new elementary and secondary space provide a district with funding to acquire furniture and equipment that is typically not fixed to the building.

Under the authority of the School Act, Sections 141 and 144

141 (1) Subject to the orders of the minister, a board may

(a) engage in a tendering process related to any capital expenditure by the board, and
(b) spend money

(i) for a local capital project
(ii) for an annual capital project
(iii) for a capital plan project, with the approval of the minister.

(2) Subject to the provisions of this Act respecting a local capital project and a capital plan project, a board may spend money on a joint capital project.

144 (1) A board must not borrow or spend money in respect of a capital plan expense unless

(a) the board has adopted a capital bylaw in accordance with section 143, and
(b) the minister has in writing authorized the borrowing or expenditure.

(2) An approval of a capital plan by the minister under section 142 (5) is not an authorization for the purpose of subsection (1) (b).

(3) A board that is authorized under subsection (1) (b) to borrow or to make an expenditure must, if the minister so directs, spend on the capital plan project such part of any surplus referred to in section 156 (10) as the minister specifies.

(4) A board that borrows money in respect of a capital plan project approved under subsection (1) must, if the minister so directs, apply to the discharge of the loan any part of a surplus referred to in section 156 (10) that the minister specifies.

(5) Despite subsection (1), a board may borrow or spend money in respect of a capital expense if

(a) the borrowing and expenditure is required because of an emergency, and
(b) the minister approves

(i) the capital project for which the capital expense is to be incurred, and
(ii) all borrowings and expenditures for that capital project.

(6) A board must not borrow money in respect of a local capital expense or an annual capital expense unless the minister has in writing authorized the borrowing.

N/A

The equipment allowance will be calculated as a percentage of the base budget rate for new construction, multiplied by the approved area of new construction and freight rate for location.

The equipment allowance for a completion project will be calculated using the percentage and base budget unit rate in place at the time approval to award the construction contract is granted by the Ministry.

One-hundred (100) percent of the equipment allowance is provided for new approved space, including new program space approved as part of major renovation projects.

Twenty-five (25) percent of the new space allowance is provided for major capital projects involving the replacement or major renovation of an existing facility. (For the purposes of this policy, a capital project is considered a major renovation where the cost of renovation exceeds $1 million, or is equal to or greater than fifty (50) percent of the cost for new construction.)

The equipment allowances for renovated or replacement space provides funding to replace major items of furniture in keeping with the new decor of the facility. It is not intended to upgrade all equipment such as small tools, appliances, textbooks or other learning resource materials.

Where a replacement school is larger than the existing school, the equipment allowance will be comprised of the following:

an equipment allowance amount for new space, calculated on the new approved area minus the existing area; plus

an equipment allowance amount for existing space being replaced, calculated on the area of the existing facility.

Where a replacement school is smaller than the existing school, the equipment allowance will be based on the new approved area.

There is no equipment allowance for minor renovation projects except where the renovated space includes a new approved educational program area.

Replacement and maintenance of equipment will be considered as operating expenses.

Equipment allowance percentages and equipment freight rates are published annually in the Five-Year Capital Plan Allowances, Rates and Costing Factors Supplement.

When requesting specific project approval in a capital plan, an equipment allowance amount shall be entered on the Capital Project Request Form.

The equipment allowance calculation will be confirmed by the Planning Officer and spending authority granted to school districts at the same time that approval is given to award the construction contract.

Five-Year Capital Plan Allowances, Rates and Costing Factors Supplement. (published annually)

If you have any questions relating to this policy, please contact David Jack in the Funding Department.