Capital improvements to land, buildings, or equipment which materially increase their value require prior written approval from the EAC per 2 CFR 200.439. Without pre-approval, capital improvement costs are not allowable.

State allocations for mandatory grants under HAVA are calculated based on a formula established in the law that includes three steps:

1. A minimum percentage is allocated to all states and the District of Columbia (½ of 1% of the appropriation) and the five territories (1/10 of 1%).
2. The remainder is allocated based on the voting age population of each state in relation to the total voting age population of all states as reported in the most recent decennial census.
3. If all states and territories do not receive the guaranteed minimum payment in HAVA ($1,000,000 for territories and $5,000,000 for the 50 states and the District of Columbia), funds are re-allocated from states above that minimum to states below the minimum to ensure all states and territories receive at least the guaranteed minimum.

The guaranteed minimum payment established in the law can be changed in appropriations language.