Board hears first reading to raise purchasing thresholds and increase capitalization limit to $10,000

Kenosha Unified staff presented first readings of two related policy changes that would raise procurement thresholds and raise the capitalization threshold for capital assets.

District officials said the changes are prompted by updated federal grant purchasing guidance and by comparisons with peer districts, and staff recommended an effective date of July 1, 2025, for the 2025–26 school year.

Lisa Salo, accounting manager, summarized the changes. She said the federal government increased purchasing thresholds in June 2023 and that keeping district thresholds aligned avoids extra tracking and compliance steps for federal grants. Under the recommended revisions, the micropurchase threshold would increase from under $5,000 to under $10,000; small purchases would move from $5,001–$25,000 to $10,001–$75,000; and large purchases would be anything greater than $75,000. Signing authority for the purchasing agent would increase to $75,000 and purchases over $75,000 would continue to require board approval. Salo said the recommended effective date is 07/01/2025 and that the item was presented as a first reading with a second reading scheduled for June 24.

Staff also reported a change to the district’s capital-asset policy (policy 3.800): the capitalization threshold would increase to $10,000 from $5,000 effective July 1, 2025. Staff said they split capital-asset rules and inventory into separate policies (creating new policy 3801 for inventories) to clarify differences between capital assets and inventory.

No final board vote occurred; both items were presented as first readings. Staff provided comparative research and federal guidance attachments for board reference.

Ending: The policies return for second reading on the board’s June 24 meeting and would be effective for the 2025–26 school year if adopted.