Our organization has established its own definition on when to consider an
item as permanent equipment (>$2K, >2yrs) and that is how we prepare our
budgets.  Not knowing which Fed agency to which you are referring - NSF
allows deviation from their >$5K, >1yr definition.  The NSF GPG 04-2, pg 21
specifically says "unless the organization has established lower levels".
You can always explain your established policy in your budget narrative.
If you add these items to your Supply line instead of the Equipment line,
then aren't you including these expenses in your IDC calculation as opposed
to "non-IDC bearing permanent equipment?"
When the expense comes in after award, how will these costs be treated by
your accounting system? As a supply or as an equipment purchase?  Just
something to consider.

~~~~~~~~~~~~~~~~~~~~~~~~~
Audree S. Hughes
Sr. Grant & Contract Administrator
Team Leader, Pre-Award Services
ODU Research Foundation
(757) 683-4293 ext. 604
fax (757) 683-5290
email:  xxxxxx@odu.edu
~~~~~~~~~~~~~~~~~~~~~~~~~

 RESADM-L Member
 <xxxxxx@SBLHS.OR        To:       xxxxxx@HRINET.ORG
 G>                       cc:
 Sent by: Research        Subject:  [RESADM-L] definitions of equipment
 Administration
 List
 <xxxxxx@HRINET.
 ORG>

 03/23/2004 12:41
 PM
 Please respond to
 Research
 Administration
 Discussion List

Hi, all -
We are preparing a proposal submission to a federal agency which uses a
definition for equipment which differs from the applicant organization's
definition. (Feds use unit cost of $5,000 or greater & usable life of > 1
yr., and applicant organization uses unit cost of $1,000 or greater &
usable
life of > 1 yr).

How do I reconcile these differences in the proposal budget? My inclination
is to include our request for items > $1,000 but less than $5,000 in the
Supply category of the budget and add a note that the applicant
organization's policy requires that expenditures for items > $1,000 unit
cost be treated as equipment. Does this cause a post-award nightmare for
either the funding agency or the grantee?
--------------------------
Molly Daniel
Interim Manager, Healthier Communities Programs
Sarah Bush Lincoln Health Center
1000 Health Center Drive
Mattoon, IL  61938
phone: 217-258-2195
fax: 217-258-4135
email: xxxxxx@sblhs.org
web: www.sarahbush.org

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