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44 <br />2. To be reimbursable as direct costs, prior written approval by the CDSS is <br />required for improvements to land, buildings, or equipment which materially <br />increase their value or useful life. (2 CFR 200.439(b)(3)). <br />3. If the Contractor wishes to share the use of real property among multiple <br />programs, the associated reimbursable capital expenditures shall be prorated <br />among the programs according to the benefits received . <br />4. Building and improvement expenditures are not reimbursable as indirect <br />costs, except as depreciation or use allowance. <br />C. Renovation and Repair (5 CCR 18034(f)) <br />Improvement of sites and adjacent grounds to meet or exceed the 22 CCR, <br />Community Care Licensing Standards are reimbursable for both private and <br />public agencies. Reimbursable improvements are those that: <br />1. Do not unnecessarily increase the value, as defined in Section X, Definitions, <br />of a facility; and <br />2. The contractor has obtained prior CDSS approval for proposed work for ten <br />thousand dollars ($10,000) or more. <br />D. Depreciation and Use Allowance (5 CCR 18034(h)) <br />1. Depreciation and use allowance may be claimed on eligible, appropriate <br />capital assets. <br />2. Depreciation shall not be claimed on land, donated assets or assets <br />purchased with public funds, on any fully depreciated asset or on idle or <br />excess facilities. <br />3. A use allowance shall not be claimed on land or assets purchased with <br />contract funds or on assets for which depreciation has been claimed. <br />4. When depreciation is applied to assets acquired in prior years, the annual <br />charges shall not exceed the amounts that would have resulted had <br />depreciation been claimed from the date of acquisition. <br />5. The use allowance for buildings and improvements is computed at an annual <br />rate not to exceed two percent (2%) of acquisition costs. <br />6. The use allowance for equipment is computed at an annual rate not to exceed <br />six and two-thirds percent (6 2/3%) of acquisition costs. <br />7. To be reimbursable, interest paid on private sector debt for the purchase, <br />lease-purchase, repair or renovation of childcare and development facilities <br />owned or leased by contractors providing center-based care must be actual