Ruth -- personal judgement only.  Two answers, for two situations.

If you are building the equipment on a grant/contract, and you have an MTDC
F&A rate, you treat all costs including personnel costs (with fringe) as
part of the cost of the equipment -- but NOT include F&A, because you can't
take F&A for equipment.  For this purpose it is a PIECE OF EQUIPMENT with
all those parts and hours involved.

If you are building it for an entity that is PROCURING it from you, then
you are DOING A CONSTRUCTION JOB, and you include F&A in the cost.

If someone has an answer from audited experience, I hope they will sing out!!

Chuck

At 01:07 PM 5/20/2003 -0400, you wrote:
>Good Afternoon,
>
>This is a question for the financial gurus out there.  One of our
>centers is fabricating a large piece of equipment.  Two technicians have
>been hired specifically to build the equipment.  I know that the
>technician wages can be capitalized.  But my question is:  Should/could
>the F&A on the wages be waived?  What is your institutional policy?
>
>Your input will be greatly appreciated!
>
>Ruth Tallman
>Office of Research and Sponsored Programs
>Lehigh University
>526 Brodhead Avenue
>Bethlehem, PA  18015
>Phone:   (610)758-3024
>FAX:    (610)758-5994
>E-mail:   xxxxxx@lehigh.edu
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
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